Informations system Essay

However, the period f replicating IT is getting faster and IT is not an unique and special strategy to succeed in business anymore. For instance, early on, Dropped had the technology of data storage as a differentiated advantage of doing business. But the technology was standardized in a short time, and so Dropped no longer had the specialized technology. Since everyone can access, share and copy IT relatively easy nowadays, it would be hard for companies to raise their competitiveness with IT itself in the market (Carr, 2003).

Executives need to rethink IT as from the source of the investment to the necessary catalyst in business (Carr, 2003). Car’s article might affect company investment by changing the way a company views IT. Carr focuses on how to manage IT to reduce risks, handling costs, and maximize profits, rather than focusing on how to develop innovative technology as a source of competitive strategy. Of course, investment in new innovative technology would be beneficial for a company. However, when it comes to improving cost efficiency of business process, the time and cost of investment could turn out to be wasted (Carr, 2003).

Carr Indicates that reducing risk of overspending for creating differentiated IT Is Important to company investment (Carr, 2003). Company affected by Carr might pay more attention to managing the current level of IT, analyzing the pros and cons of utilizing IT, and then decreasing controlling cost. Even though companies Invests In developing new IT, the newly Invented IT will be replicated and shared by other companies which will lead to escalating profit loss for the Individual company but the overall Industry will benefit by sharing Innovative technology. I will examine how

Car’s methodology can be used In practical application. Car’s article reminds me of my previous work place where the hospital purchased an electronic charting system from another company instead of budgeting to create its own program. The hospital was aiming to stabilize their system by decreasing the vulnerabilities, which includes malfunction or service outage. I remember IT staff spending a lot of time improving management invested in: proper employee training for the new charting system, potential risk awareness, and quick error responses for the system.

These actions by he manager stopped bigger problem, which might have caused huge reductions in profit and productivity. These actions might be some of the ways Carr wants companies to plan IT investment spending. Companies that have already invented innovative technology might be convinced by Carr to invest money to integrate its technology with other’s to gain the full potential of the technology instead of holding on to unique technology which will soon become commonplace (Carr, 2003). Utilizing IT to enhance efficiency and effectiveness in business is essential instead of Just seeing it as a source of advantage.

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