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Volume 8 Issue 3 December 2005
Why IT Continues to Matter: Reflections on the Strategic Value of IT
Frank Bannister and Dan Remenyi
Trinity College, Dublin, Ireland
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In May 2003 an article by the former editor of the Harvard Business Review (HBR), Nicholas Carr, in HBR, suggested that IT was no longer a strategic concern for management and that investments in IT should, in future, be restricted to the routine. Carr’s thesis has been widely debated, not least in the context of IT value in general and its strategic value in particular. Notwithstanding flaws in his reasoning, this short nine-page article appears to have had a significant impact and influence on the way chief executives think about IT, and has had real consequences for IT budgets, not to mention careers. Carr went on to develop his ideas in a subsequent book. This article examines Carr’s arguments at a number of levels and suggests that it would be unwise to base long-term thinking about IT on his conclusions.
Keywords: IT value; strategic value; technology value; strategy; innovation
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