Does IT Matter?

This chapter centers around the idea of the strategic value that information systems can bring to an organization. Pay attention to the arguments around the idea of competitive advantage. After you read, reflect upon the arguments presented about the impact that information technology has on competitive advantage.


Information systems are integrated into all components of business today, but can they bring competitive advantage? Over the years, there have been many answers to this question. Early research could not draw any connections between IT and profitability, but later research has shown that the impact can be positive. IT is not a panacea; just purchasing and installing the latest technology will not, by itself, make a company more successful. Instead, the combination of the right technologies and good management, together, will give a company the best chance of a positive result.