Last summer there was an explosive article in the Harvard Business Review IT Doesn’t Matter by Nicholas Carr, on how IT may go the way of the railroads. So what should companies do? From a practical standpoint, the most important lesson to be learned may be this: When a resource becomes essential to competition but inconsequential to strategy, the risks it creates become more important than the advantages it provides.
Well, Bloor Research in Performance Management and why IT doesn’t matter states the problem is in converting strategic thinking into tactical action.
So, the core question is whether senior executives are any good at developing corporate strategy? All the evidence suggests that, with only a few exceptions, they are not.
In the long run, though, the greatest IT risk facing most companies is more prosaic than a catastrophe. It is, simply, overspending. Studies of corporate IT spending consistently show that greater expenditures rarely translate into superior financial results. In fact, the opposite is usually true. Organizations have a perverted thinking that if they have “the latest and the greatest” software and hardware, they are on the leading edge of IT strategy. Wrong!
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