Lek 2: Does IT matter?
Carr siger: IT doesn’t matter due to new rules for management
 Spend less
 Follow, don’t lead
 Focus on vulnerabilities, not opportunities
Business model = the core logic
Prioritizing IT investment through 3 C´s
 Content
 Commerce
 Community
Key constituents
 Management, User, It, Partnership
KPI = Key Performance Indicators
SLA = Service Level Agreement
VMI = Vendor Management Inventory
Hagel & singer Framework is a alternative to Porters generic strategies = Cost leadership,
focus and differentiation
1. Product innovation (economy of speed)
2. CRM: identity and build relationship to customers (economy of scope)
3. Infrastructure management: similar to Porter’s due to cost-leadership, high-volume and
repetitive operational risk (economy of scale)
= All 3 cannot operate within the same organisation
SWOT is a tool that comes from the positioning school, but swot-analysis can come into the
resource-based view when you look inside your company and out.
Argument for the commoditization of IT
- subject of a rapid deflation
- highly replicable, and it has a near infinity scalability
- first and foremost a transport mechanism (NOT correct due to customization, value asset)
- internet has accelerated commoditization and a strong drive change to standard system (
BUT it has also increased innovation!)
Future role for distributors
- not necessarily disintermediate but train them, make them consultant for your product.
They have valuable knowledge
EX Gatetrade.net
- 3.party marketplace, B2B
- Horizontal portal = specialized products
- MRU = maintainance, repair, operate = ikke kun teknik, men forandring af mennesker
- Skal skabe bedre forhandlingsgrundlag, reducere omkostninger, øge effektiviteten for
kunderne
- Et katalog, men også en auktion
- Det er kundernes efterspørgsel der driver
- Forretningsprocesoptimering og effektivisering
Carr: IT doesn’t matter
No one dispute that IT has become the backbone of commerce
IT is not truly a strategic resource – ubiquity and scarcity is not basis for sustained competitive
advantages. To gain an edge is by having something that nobody else have – and that is not data
storage, data processing and data transport = Its core functions = commodity factors of production
Distinct between proprietary technologies and infrastructural technologies (= influence
competition but only at the macroeconomic level, not the level of the individual company)!
IT is first and foremost a transport system – it carries digital information – far more valuable
shared than isolated.= history = increased interconnectivity = standardization and homogenization
of its functionality
Reproducible at no cost – generic applications and generic processes = cost savings and benefits of
interoperability. Best practices are quickly built into software.
Overinvestment in IT in the 1990’s is compared to overinvestment in railroads which led to
deflation, value of product erode,
Instead of seeking advantages through technology, Carr argues, companies should manage IT
defensively – watching costs and avoiding risks.
Modsvar:
You might see IT as a commodity because you haven’t aggressively enough though about how IT
can bring about new business practices. The differentiation is in the practices not in IT itself.
Eksamens spørgsmål
Hvad er argumenterne for at IT doesn’t matter?
 IT er blevet en commodity
 Vi bruger de samme standarder for at skabe interoperabilitet
 De competitive advantages er små
 Rapid price deflation
 Highly raplicable
 Foremost a transport mechanism, der gør virksomheder transparante og gennemsigtige
Begrundelse for IT
Carr is right in his estimation of the technological devalopment BUT IT is much more than a
transport or an infrastructure technology. IT is influencing every business process and is the basis
for totally new way of organizing
 Værdiforøgelse
 Optimering
 Effektivering
 Innovation (increased)
IT er et procesoptimeringsværktøj så som LEAN (Toyota proces for maskinel produktion,
specialisering) og just-in-time
Cases (se gatetrade)
Novosymes: hvordan de via deres portal skaber mere værdi
3 rum for kundesegmentering: Buyer, info/produktinfo, aftersales/support