Information Technology (Essay Sample)

Information Technology
Name
Institution
It Doesn’t Matter Article Summary
The history of information technology (IT) dates back to 1968 when microprocessor invention occurred. Growth in IT caused a revolution in the business world forming its backbone. Consequently, companies have invested a lot in IT as a way to improve customer awareness. However, companies fail to consider the drawbacks of investing a lot of their income in the IT department.
IT revolutionized operation of how things are carried out on every aspect. The application of IT in the business world leads to rise in their productivity. Consequently, most of the businesses invest a lot in the IT department to secure competitive advantage over their competitors. The article covers the disadvantages associated with investing in the IT department. According to Carr (2003), companies that devote more than 50 percent of their capitals narrow their competitive advantages. The decrease in their rate of competition is due to the uniformity in the application of the IT by competing companies. However, Carr (2003) argues that a resource is only able to secure competitive advantage in the market if it is scarce.
Business success lies in its uniqueness that is appealing to the customers. For a company to reach success in the market, it must attain more top of mind awareness. The awareness requires the company’s products to have particular distinguishing attributes, which do not entirely depend on IT. Carr (2003) argues that managers should view IT as a liability rather than an asset in the company. The advantages of IT have declined over time due to its ubiquity while requiring substantial investment and maintenance cost. Consequently, companies end up losing a lot of money, which could otherwise be used in other aspects of ensuring business sustainability.
Competitive advantages highly depend on factors contributing to brand awareness. IT plays little role in improving competitive awareness if it is ubiquitous. In achieving competitive awareness, companies should consider areas of vulnerability rather than new business strategies associated with implementing more IT infrastructure.
Carr (2003) argues that in the results of technology in improving customer awareness usually decreases with time. Managers fail to have an insight of the impacts the technology will have on market sustainability. They invest in IT despite the brief advantage technology has on the company. Technology has short competitive advantage to the business because of its accessibility and standardization. Standardization results from the emulation of best technological practices. Once the short span of revolutionizing productivity is over, companies end up losing a lot of capital in the investment. Companies should major on managing risks and cost rather than seeking business advantage.
Companies ought to take time before investing on technology. According to Carr (2003), technological importance declines with its access with time while its cost also declines. The application of IT may become obsolete in earning a company more customer awareness. In such a case, taking time before implementing IT becomes crucial in reducing risk of investing in IT.
Reaction to the Article
IT is crucial in dictating the success of a business. Importance of IT in improving success of a company depends on various factors. Failure to consider the factors renders IT a liability in a business. One major factor to consider is IT type to implement, an organization's structure, business environment and practices of management of the company (Melville, Kraemer & Gurbaxani 2004). Carr (2003) argues IT later declines in adding competitive advantage to a company due to the ubiquitousness of the investment. Melville, Kraemer & Gurbaxani (2004) argues that IT business value spans to cover even the end customers. For this reason, considering price fall as a decline in a company’s success is misappropriation of IT value.
A company’s success depends on the implementation of its strategies. According to Powell & Dent-Micallef (1997), IT improves integration of IT strategy. Additionally, IT serves to help in improving coordination, both internal and external, to the company. Improved coordination helps a company to implement strategies at a lower cost structures consequently earning the company competitive advantage...