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Is Google Making Us Stupid? By Nicholas Carr 948 Words 4 Pages. Nicholas Carr is an author that focuses on the real word changing. His main focuses are the changes in technology, business and the culture.
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Does IT Matter? An HBR Debate - John Seely Brown:
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to Nicholas G. Carr, editor-at-large of Harvard. Business Review (HBR). He recently wrote IT Doesn't Matter, an article with the following summary of its central?
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Ten years ago this month, the Harvard Business Review published an article by Nicholas Carr, who argued that “IT Doesn’t Matter,” i.e., that information technology doesn't create strategic advantage. To be sure, there are plenty of mundane IT applications—expense reporting and benefits enrollment systems, for example—but if IT categorically doesn’t matter, how does one explain, say, Google’s success? After all,
Before delving into Forrest's insights, let's review the opposing positions. Carr’s argument, simply stated, is that IT doesn’t matter because IT has become ubiquitous and is thus a commodity. He observed that “what makes a resource truly strategic…is not ubiquity but scarcity.” In other words, if every firm has access to the same servers, storage, networks, or packaged software (today one might add cloud infrastructure, platform, and software as a service to the list), then no firm can gain the upper hand by using them. If this argument is correct, then IT should be the focus of disciplined cost management.
On the other hand, web innovator and venture capital general partner Marc Andreessen contends that “software is eating the world,” and Kleiner Perkins general partner Mary Meeker lists numerous industries being “re-imagined” through IT. For example, Wikipedia’s entry eventually caused the sun to set on Encyclopedia Britannica’s printed volumes. Borders Books concluded its final chapter as
To help bridge the chasm between these two perspectives, earlier this week I spoke with Forrest, who says that companies need to distinguish between “old IT” and “new IT.” According to Forrest, old IT addressed labor automation, individual worker productivity, and non-human scale computing; new IT should focus on digital products and services, team productivity, and business model transformation. Benefits from old IT have reached a point of diminishing returns; new IT can be a source of competitive differentiation and dramatic wealth creation.
In Forrest’s view, a majority of the gains from labor automation—for example, replacing call center operators with interactive voice response systems or assembly line workers with robots—have already been achieved in many areas of the workforce.
Forrest’s research shows that individual worker productivity improvements—for example, using desktop computers for financial analysis or document preparation—are now only responsible for about ten percent of knowledge worker productivity growth, down from a high of thirty percent a few years ago.
Intentionally being provocative, he claims that, for enterprises, “few breakthrough computational problems have been solved” in the last few decades. He says that supercomputing milestones—say, weather modeling or the Human Genome Project—have generally occurred in the public sector, whereas enterprise IT has been more linear and evolutionary, e.g., airlines moving from paper tickets to e-tickets and dynamic pricing.
Forrest recommends that executives instead focus on new IT.
Digital products and services—either purely virtual or digitally driven—are one category of new IT, exemplified by the enormous wealth creation and valuations of digital-native icons such as Google, Facebook, and Twitter. Even physical businesses can offer digital products. An obvious example is Netflix evolving to complement physical DVD distribution with on-line streaming. A more subtle example is Nike, an athletic apparel brand, which introduced Nike+, available as a smartphone app, “SportWatch”, or “SportBand” wristband. Besides directly charging for such products and services, various other monetization approaches exist: advertising, freemium, in-app purchases, virtual goods, and so forth. And, ROI for such initiatives can be enhanced by lower churn and greater customer lifetime value.
Team productivity growth offers opportunities beyond individual worker productivity, Forrest says, whether for internal collaboration, or for collaboration across supply chains or networked enterprises. Such collaboration can be enhanced by standard tools that have been refreshed for sharing, such as Microsoft Office Web Apps; cloud-only approaches such as Google Docs (which includes spreadsheets and presentation tools); and through digital enablers for collaboration, such as Salesforce.com’s Chatter, Citrix’s GoToMeeting, or Cisco’s TelePresence, to name just a few.
Business model transformation may well be the most powerful use of IT. Using Amazon as an example, Forrest lists five major levers:
Nicholas Carr Does It Matter Pdf To Jpg Pdf
- Production and operations optimization—e.g., deploying and then acquiring Kiva Systems robotics for Amazon.com warehouse logistics, or, e.g., making the Amazon Web Services “cloud” fully self-service with highly automated provisioning of computing, storage, and network resources
- Eliminating intermediaries—e.g., bypassing publishers to connect authors more directly with customers, capturing a larger portion of industry revenues
- New monetization models—e.g., creating Amazon Web Services and offering computing resources for rent
- Shaping customer preferences—e.g., leveraging “big data” and recommendation engines to cross-sell products
- Transforming underserved markets—e.g., taking a fragmented market of used booksellers and creating a single virtual storefront
While Amazon is a great example of a relatively young, high-tech company leveraging “new IT,” long-standing companies can apply the same insights. Forrest provides several examples. Procter & Gamble complemented internal R&D with open innovation via its Connect+Develop platform, which helps crowdsource development of new products. A global beverage giant plans to use predictive analytics to fine tune promotions—a real-time price cut could maximize profits, say, when the relative humidity in a given zip code exceeds a given level—and is already considering one quintillion decision variables to consistently blend orange juice to meet customer taste preferences. GE has invested over $100M in EMC Pivotal, potentially accelerating its ability to, say, not only connect up household appliances but also offer customized energy efficiency programs to each household.
Commoditization—and its attendant stagnant revenues and razor-thin margins—is not necessarily a predetermined end state, but often is merely a failure of imagination. Forrest counsels that we think of information technology not solely in terms of reducing cost or increasing labor productivity, but rather as a means to create new digital businesses and transform existing ones to deliver profitable new revenue streams.
'>Ten years ago this month, the Harvard Business Review published an article by Nicholas Carr, who argued that “IT Doesn’t Matter,” i.e., that information technology doesn't create strategic advantage. To be sure, there are plenty of mundane IT applications—expense reporting and benefits enrollment systems, for example—but if IT categorically doesn’t matter, how does one explain, say, Google’s success? After all,
Before delving into Forrest's insights, let's review the opposing positions. Carr’s argument, simply stated, is that IT doesn’t matter because IT has become ubiquitous and is thus a commodity. He observed that “what makes a resource truly strategic…is not ubiquity but scarcity.” In other words, if every firm has access to the same servers, storage, networks, or packaged software (today one might add cloud infrastructure, platform, and software as a service to the list), then no firm can gain the upper hand by using them. If this argument is correct, then IT should be the focus of disciplined cost management.
On the other hand, web innovator and venture capital general partner Marc Andreessen contends that “software is eating the world,” and Kleiner Perkins general partner Mary Meeker lists numerous industries being “re-imagined” through IT. For example, Wikipedia’s entry eventually caused the sun to set on Encyclopedia Britannica’s printed volumes. Borders Books concluded its final chapter as
To help bridge the chasm between these two perspectives, earlier this week I spoke with Forrest, who says that companies need to distinguish between “old IT” and “new IT.” According to Forrest, old IT addressed labor automation, individual worker productivity, and non-human scale computing; new IT should focus on digital products and services, team productivity, and business model transformation. Benefits from old IT have reached a point of diminishing returns; new IT can be a source of competitive differentiation and dramatic wealth creation.
In Forrest’s view, a majority of the gains from labor automation—for example, replacing call center operators with interactive voice response systems or assembly line workers with robots—have already been achieved in many areas of the workforce.
Forrest’s research shows that individual worker productivity improvements—for example, using desktop computers for financial analysis or document preparation—are now only responsible for about ten percent of knowledge worker productivity growth, down from a high of thirty percent a few years ago.
Intentionally being provocative, he claims that, for enterprises, “few breakthrough computational problems have been solved” in the last few decades. He says that supercomputing milestones—say, weather modeling or the Human Genome Project—have generally occurred in the public sector, whereas enterprise IT has been more linear and evolutionary, e.g., airlines moving from paper tickets to e-tickets and dynamic pricing.
Forrest recommends that executives instead focus on new IT.
Digital products and services—either purely virtual or digitally driven—are one category of new IT, exemplified by the enormous wealth creation and valuations of digital-native icons such as Google, Facebook, and Twitter. Even physical businesses can offer digital products. An obvious example is Netflix evolving to complement physical DVD distribution with on-line streaming. A more subtle example is Nike, an athletic apparel brand, which introduced Nike+, available as a smartphone app, “SportWatch”, or “SportBand” wristband. Besides directly charging for such products and services, various other monetization approaches exist: advertising, freemium, in-app purchases, virtual goods, and so forth. And, ROI for such initiatives can be enhanced by lower churn and greater customer lifetime value.
Team productivity growth offers opportunities beyond individual worker productivity, Forrest says, whether for internal collaboration, or for collaboration across supply chains or networked enterprises. Such collaboration can be enhanced by standard tools that have been refreshed for sharing, such as Microsoft Office Web Apps; cloud-only approaches such as Google Docs (which includes spreadsheets and presentation tools); and through digital enablers for collaboration, such as Salesforce.com’s Chatter, Citrix’s GoToMeeting, or Cisco’s TelePresence, to name just a few.
Business model transformation may well be the most powerful use of IT. Using Amazon as an example, Forrest lists five major levers:
- Production and operations optimization—e.g., deploying and then acquiring Kiva Systems robotics for Amazon.com warehouse logistics, or, e.g., making the Amazon Web Services “cloud” fully self-service with highly automated provisioning of computing, storage, and network resources
- Eliminating intermediaries—e.g., bypassing publishers to connect authors more directly with customers, capturing a larger portion of industry revenues
- New monetization models—e.g., creating Amazon Web Services and offering computing resources for rent
- Shaping customer preferences—e.g., leveraging “big data” and recommendation engines to cross-sell products
- Transforming underserved markets—e.g., taking a fragmented market of used booksellers and creating a single virtual storefront
Nicholas Carr Background
While Amazon is a great example of a relatively young, high-tech company leveraging “new IT,” long-standing companies can apply the same insights. Forrest provides several examples. Procter & Gamble complemented internal R&D with open innovation via its Connect+Develop platform, which helps crowdsource development of new products. A global beverage giant plans to use predictive analytics to fine tune promotions—a real-time price cut could maximize profits, say, when the relative humidity in a given zip code exceeds a given level—and is already considering one quintillion decision variables to consistently blend orange juice to meet customer taste preferences. GE has invested over $100M in EMC Pivotal, potentially accelerating its ability to, say, not only connect up household appliances but also offer customized energy efficiency programs to each household.
Commoditization—and its attendant stagnant revenues and razor-thin margins—is not necessarily a predetermined end state, but often is merely a failure of imagination. Forrest counsels that we think of information technology not solely in terms of reducing cost or increasing labor productivity, but rather as a means to create new digital businesses and transform existing ones to deliver profitable new revenue streams.