IDC Forum: Why IT matters

IT commoditization? Asian threat? Crippling viruses? Speakers at IDC's European IT Forum 2004 in Paris didn't have to look far for contentious issues.

In the opening session on Monday two authors, Nicholas Carr ("Does IT Matter") and Don Tapscott ("The Naked Corporation"), butted heads over whether competitive, economic and technological forces are transforming IT from a strategic resource into a commodity.

Carr believes the trend toward commoditization is here to stay and users should take advantage of it. His thesis: Now that IT has become a commodity -- a pervasive infrastructure -- any company has access to standard technology and any system can be instantly replicated. Thus any competitive advantage gained from new-system implementation is lost.

"IT will deliver its greatest value when it becomes invisible to users -- when it's taken for granted," Carr said.

Vendors have "overshot" users by pushing technology to the cutting edge, according to Carr. "Users don't see advantages in being at the cutting edge," he said. "They're resisting the upgrade cycle; they're searching for lower-cost innovation."

Tapscott's counter thesis: Sure, some IT hardware has become a commodity; it's not scarce. What's scarce, though, is knowing how to use IT in an innovative manner and gain a competitive edge by doing so. Companies should focus on what they do best and partner to do the rest in "business webs," taking advantage of new computing and networking systems.

Tapscott is hardly alone in his conviction that IT offers a competitive advantage. Speaking in a round-table discussion, John Schwarz, president and chief operating officer (COO) of Symantec Corp., said utilities, such as gas, water and electricity, have changed little over the decades and have evolved into commodity infrastructures. "Our industry is changing every day," he said. "That's a big difference."

While admitting that some IT commoditization exists, Le

IDG News Service

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