Wednesday, June 16, 2004
IT Doesn't matter
This article (IT Doesn't matter) has caused a bit of a hoo-hah in the industry. I had missed it until a colleague pointed it out, and I found it very interesting. It provides lots of "food for thought". I think Nicholas Carr is deliberately being provocative. I don't agree with the conclusion of the article - "IT doesn't matter", on the contrary I think the article makes a excellent case for "IT is essential", but the challenging argument should encourage businesses to review how they are investing in IT.
Carr's main point is that IT is becoming a commodity (or a utility), and that the important thing about a commodity or utility is the negative effect _not_ having it can have on the business. Some people fall into the trap of assuming that things they have are universally available. Even in the Europe access to motorways, mains water, sewerage, electricity, telephone and broadband is _not_ universally available. Assuming it is are has contributed to some very bad business decisions. This is one reason behind the (local) political campaigning for broadband, and why governments invest in or subsidise "infrastructure".
Commoditisation is why IBM and Microsoft are positioning themselves as suppliers of infrastructure and utilities and Apple are moving towards consumer goods (iPod) and consumer services (iTunes). Carr points out that systems need to be enhanced or replaced. His example of AHS shows that a system which provided business advantage can eventually become "a millstone" if it is not replaced in time. The reasons for this are not purely technical:
Finally, Carr overlooks some of the opportunities technology is creating:
In conclusion, I think Carr has a valid point about IT becoming "infrastructure" but that IT matters all the more because it is taken for granted. Maybe we will have to change the name "IT", or invent something new. In any case there is still sufficient techological innovation to create opportunities for businesses to gain strategic advantages.
Carr's main point is that IT is becoming a commodity (or a utility), and that the important thing about a commodity or utility is the negative effect _not_ having it can have on the business. Some people fall into the trap of assuming that things they have are universally available. Even in the Europe access to motorways, mains water, sewerage, electricity, telephone and broadband is _not_ universally available. Assuming it is are has contributed to some very bad business decisions. This is one reason behind the (local) political campaigning for broadband, and why governments invest in or subsidise "infrastructure".
Commoditisation is why IBM and Microsoft are positioning themselves as suppliers of infrastructure and utilities and Apple are moving towards consumer goods (iPod) and consumer services (iTunes). Carr points out that systems need to be enhanced or replaced. His example of AHS shows that a system which provided business advantage can eventually become "a millstone" if it is not replaced in time. The reasons for this are not purely technical:
- Competitors, customers and partners are changing how they work, so the business needs to move forward,.
- Administrative systems (of which IT is just an implementation) seem to suffer from a form of "entropy" which the originator of "Parkinson's Law" (C Northcote Parkinson - "The task expands to fit the time (resources available)") called "injellititus". This means that if not overhauled regularly, the bureaucracy serves itself and not the business.
- These "regular overhauls" make me optimistic that there will be work for Business Analysts like me (us?) at least long enough for me to draw a pension. Even electrical wiring and plumbing are replaced periodically.
Finally, Carr overlooks some of the opportunities technology is creating:
- Cellular phones and wireless networks are creating opportunities (and problems) for interaction between businesses,
- RFID (Radio Frequency ID) allows individual items to be tracked and the records to be integrated with business processes in a way that promises much.
- Goodness knows what is coming in the way of embedded systems.
In conclusion, I think Carr has a valid point about IT becoming "infrastructure" but that IT matters all the more because it is taken for granted. Maybe we will have to change the name "IT", or invent something new. In any case there is still sufficient techological innovation to create opportunities for businesses to gain strategic advantages.
# posted by tom_gillies @ 1:05 PM 
