1- What is the major point (s) that Nicholas Carr made in his famous article reg
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Question
1- What is the major point (s) that Nicholas Carr made in his famous article regarding IT governance?
2- Discuss the differences of opinion, if any, between Professor Gurbaxani and Nicholas Carr regarding IT
3- What does Gurbaxani mean by his statement on page 102?
Chapter Making the IT Case for " We continue pumping trillions of dollars annually into information technology to pursue competitive advantage and spur productivity. But extracting strategic value and productivity from IT has become increasingly challenging Harvard Business Review, 2003 In spring 2003, Nicholas Carr published a controversial article entitled "It Doesn't Matter. Following on the heels of the dot-com meltdown and subsequent global eco nomic recession, the article quickly became a best seller as business executives chal lenged chief information officers (CIOs) to explain and sometimes defend their IT budgets and requests for support of new IT investments, Carrs argument was built upon the premise thatin the past, legendary IT for strategic applications example, American Airlines' Sabre reservation system and WalMart's IT-enabled supply chains were developed in-house using proprietary capabilities, with each applica tion millions of dollars worth investment and years of effort representing a of These IT systems enabled differentiate its , each firm to strategylock in key suppliers and customers, and build proprietary capabilities that others could not match. As such, IT became the foundation for strategic advantage. In doing so, American Airlines and WalMart gained power within their respective industries and forced other players to adopt new business models to survive. While these approaches worked in the 1980s, Carr argued that, by the late 1990s, many of the IT applications in use within firms were widely available from vendors and service providers. Others were being built internally but used development tools that dramatically decreased development cost and effort. Given that these were widely available, the systems could be quickly copied. More recentlysystems tools , IT have been built using common standards to enable them to be rapidly disseminated through "open" broadband networks. Since strategic positioning defines what makes This chapter based on executive is material developed by Professor Lynda M. Apolesate for an tutorial entitled "Making the Case for IT," available from the author, Permission to 1 reprint must be obtained from author winging the Business Review OnPoint No513) Real Value from I" Harvard . , October 2003. N. CarT Doesnt Matter" Harvard Business Review, May 2003 101Explanation / Answer
Given Information :
This case is all about , the use of Information Technology in organizations for day to day applications .
Nicholas Carr Opinion is that its very costlier one
Prof.Vijay Gurbaxani says its costlier at the early phase ,afterwords its cost is negligible.
Answer :
1- What is the major point (s) that Nicholas Carr made in his famous article regarding IT governance?
Nicholas Carr in his article mentioned about the IT governance .He mentioned the following things.
1) Application which are dependent on Information technology are very costlier once.
2) Its capital intensive system.
3) Nicholas Carr proposes that these applications changes over period of times as the business scenarios are changing.
4) Big organizations need not develop these kind of system at their level.They may loose their core competence.For that if that work is outsourced then that can be affordable for company instead of doing that work within organizations.
5) Nicholas Carr said IT can not be a part of strategic planning.
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2- Discuss the differences of opinion, if any, between Professor Gurbaxani and Nicholas Carr regarding IT .
Answer :
Yes there are differences in the opinion of Professor Gurbaxani and Nicholas Carr regarding IT.
Nicholas Carr regarding says :His approach is IT is a capital intensive system.It needs very high capital.
Professor Gurbaxani says : IT is very important for all application for longer time.
Nicholas Carr regarding says : IT is not useful at longer term
Professor Gurbaxani says : IT is useful through out the period of business transactions.
Nicholas Carr regarding says :IT can not be part of strategic planning .
Professor Gurbaxani says : IT is main part of strategic planning.
Nicholas Carr regarding says :IT can not sustainable over a period of time.
Professor Gurbaxani says : Only IT can be sustainable & helpful in today's changing business environment.
Nicholas Carr regarding says : Big organizations need not be focus on IT application.
Professor Gurbaxani says : Big organizations can only survive by using a right IT tools.
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3- What does Gurbaxani mean by his statement on page 102?
Answer :
Prof.Gurbaxani says in his opinion that
1) In today's situation application of IT tools are very important that helps to take a faster decision.
2) All the operations should be assigned to IT applications.
3) IT should be core part of organizations activities.
4) IT tools are costlier at the start but its cost reduces over a period of time.
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