Md.Moshiur Rahman
Id: 10164013
Nicolas Carr’s Argument: IT is no longer a differentiation factor in organizational performance because:
- Every firm can purchase IT in the market place.
- Any advantage obtained by one company can easily be copied by another company.
- IT is now a commodity based on standards that all companies can freely use.
My Opinion: Carr is surely correct in stating that not all investments in IT work out or have strategic value. Some are just needed to stay in business, to comply with govt. reporting requirements and to the needs of customers and vendors.
Explanation for my opinion: The modern organization faces a host of challenges when it comes to competing in the global economy. In an effort to meet many of these challenges organizations have consistently chosen information technology (IT) as a central means to achieve their goals. While IT does provide the organization with some notable advantages, the reality is that without proper implementation of information technology in the organization no real gains from IT will be gained. In short, IT needs to be matched with business strategy in order for real value to be garnered from the development of information technology infrastructure. Despite the fact that challenges of merging IT and business strategy remains a notable concern for executives there is still growing interest in making this process work. The ability to synthesizing business strategy with information technology is critical for the organization to reap increased financial rewards, including higher market shares and sales volumes. Although most scholars can see the importance of IT in this context, achieving a real life IT strategy that can be fully integrated into business strategy remains an elusive goal for most organizations. Unfortunately, success in this area is needed such that a model for successful integration can be developed. When the situation that has been created in this case is examined overall, it becomes evident that the organization has established a clear dichotomy. Although information technology is touted as the most pertinent method for moving the organization forward, in most instances, IT does not provide any real value for the organization. Even when efforts are undertaken to integrate information technology into business strategy, the costs and practical implications are insurmountable. Thus, the one new advance that can move the organization forward has become the one sticking point for long-term organizational development. With this in mind, one cannot help but wonder what the tipping point for change will be.
Recommendation: IT alignment in my opinion is:
o Right people at right position.
o Create a simple sustainable workable alignment model.
o Measure measure and measure: The focus of this value chain integration should not just be focussed on Strategic projects. But the way it is delivering the day to day bread and butter services.
o Discover a Path for Maximizing the Value of IT.
o Gain Strategic Insight into Technology and Industry.
o Assess Risk and Business Impact of IT Decisions.
o Benchmark your IT operation against industry peers.
o Understand the role of technology plays in your company now and how can you use it in future.
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