It Doesn’t Matter

IT Doesn’t Matter Nick Carr

Questions • What does Carr mean when he discusses a vanishing advantage? – What is the advantage one gains from IT?

Questions • What does the commoditization of IT mean? – What is a commodity? – How do you make a product into something that is not a commodity? – How does this Apply to IT?

Questions • The examples of railroads and electricity seem to be similar to IT; are these analogies valid? – What is different about IT? – How is IT similar to these examples?

Questions • What does Carr feel are the new rules for IT? – Do you think Carr’s recommendations are strategies that firms should follow? – Is there are role for IT in innovation and striving for excellence?

Generating premium returns on your IT investments • What is IT Savy? – IT savvy refers to the planned, ongoing use of a set of interlocking business practices and competencies that collectively derive superior value from IT investments

Generating premium returns on your IT investments • How does a firm become IT Savy? • What is helpful about viewing IT through the portfolio lens? – Successful IT portfolio techniques change the conversation from technical to strategic considerations by applying a commercial lens to IT investments

• Why is this important? – the result is an allocation of IT assets that is appropriate for the company’s circumstances.

Generating premium returns on your IT investments • What are the elements of this portfolio? – Infrastructure – Transactional – Informational – Strategic

Generating premium returns on your IT investments • What are the hallmarks of the ITsavvy company?

Generating premium returns on your IT investments • How do firms match IT-savvy practices and competencies with the IT portfolio?

Investing in the IT that makes a competitive difference

Investing in the IT that makes a competitive difference • What has changed? • Who has been changed? • What caused the change?

Investing in the IT that makes a competitive difference • What has changed? A new dynamic • Who has been changed? Everyone • What caused the change? Not just IT, but processes

Investing in the IT that makes a competitive difference • The indicators in the research: – Concentration – Turbulence – Performance spread

Investing in the IT that makes a competitive difference

Investing in the IT that makes a competitive difference

Investing in the IT that makes a competitive difference

Investing in the IT that makes a competitive difference • So, when did all this happen? • What is the underlying cause? • How do they make it work?

Investing in the IT that makes a competitive difference • So, when did all this happen? Mid ’90s • What is the underlying cause? IT/productivity • How do they make it work? Embedded in IT & Propagation

Investing in the IT that makes a competitive difference • How do we see this evolve? • Who is responsible for making it all work? • What should the mantra be?

Investing in the IT that makes a competitive difference • How do we see this evolve? It’s a self propagating cycle • Who is responsible for making it all work? Managers, of course! • What should the mantra be? Deploy, innovate, propagate…

Investing in the IT that makes a competitive difference • Where will the next brilliant idea come from? • So, is management out of the picture?

Investing in the IT that makes a competitive difference • Where will the next brilliant idea come from? The masses • So, is management out of the picture? Of course not; identify and propagate