Upon successful completion of this chapter, you will be able to:
- define the productivity paradox and explain the current thinking on this topic;
- evaluate Carr’s argument in “Does IT Matter?”;
- describe the components of competitive advantage; and
- describe information systems that can provide businesses with competitive advantage.
For over fifty years, computing technology has been a part of business. Organizations have spent trillions of dollars on information technologies. But has all this investment in IT made a difference? Have we seen increases in productivity? Are companies that invest in IT more competitive? In this chapter, we will look at the value IT can bring to an organization and try to answer these questions. We will begin by highlighting two important works from the past two decades.