IT Doesn't Matter...Really?

What Carr is talking about is the IT that is infrastructural technology not proprietary technology. Carr is stating that many organizations confuse infrastructural technology as proprietary technology, especially during the years of the build-out phase which install the greatest amount of this infrastructural technology such as desktop computers, enterprise software, LAN's and the Internet. This build-out leads to standardization, falling prices and greater accessibility, but not strategic advantage for organizations.

Carr states that this trend mirrored the buildup of other types of infrastructure such as highways, railroads and power grids. IT has become a commodity just like these early technologies, although the early adopters initially gained the first mover advantage in the marketplace, these opportunities are largely gone since most of the technologies are available to all the players just like the power grid and the Internet.

Carr is not saying that proprietary IT does not matter to modern companies, only the infrastructural technology which is available to the entire market. I think that the catchy title was his way of getting every one's attention. Proprietary IT such as Apple's iTunes's store or Google's search system are a key differentiating element of their success and Carr is not talking about this type of IT investment. Carr also uses Dell and Wal-Mart as an example of companies that let others invest in the new systems that hold promise as well as risk, and invest when standardization, best practices and lower costs have taken effect.

I agree with Carr's major idea, that IT investment has been over emphasized and too much has been spent in new technologies that really don't improve the profitability or strategic position of the company. Too much investment can actually be bad as witnessed during the dot-com and real estate bubbles of recent years. I especially agree with the new rules for IT managers, spend less (even more important now), follow, don't lead (leading is expensive and risky), and focus on vulnerabilities not opportunities (your bank website being down for several days).