Case Study 4

Case Study Questions and Answers:
1. Do you agree with the argument made by Nick Carr to support his position that IT no longer gives companies a competitive advantage? Why or why not?

Answer:
I do not agree with Nick Carr, because I think advances in technology have unforeseen benefits in the workplace.
IT is expensive and at first difficult to understand, but if it is used in the capacity for which it was created, it can give huge returns on its investments. For example, how would Wal-Mart be able to stay on top of the market without its complex inventory technology? The use of new software has revolutionized that portion of their business. I agree with Michael Dell that, that blindly attempting to implement IT into your business is not a good strategy, but with careful use and training of a sophisticated IT department, the use of cutting edge technology is more of a necessity than an option.

2. Do you agree with the argument made by the business leaders in this case in support of the competitive advantage that IT can provide to a business? Why or why not?

Answer:
I agree with Michael Dell’s statement, that without the proper use of the equipment, it’s expense outweighs the benefits gained. This is why its so important to put people in positions that are competent in these emerging IT fields. With the advances in technology that are happening everyday, it would be an unwise choice not to capitalize on use of this new software, because when your competitor does, you will be at an obvious disadvantage.

3. What are several ways that IT could provide a competitive advantage to a business? Use some of the companies mentioned in this case as examples. Visit their websites to gather more information to help you answer.

Answer:
The major advancement that continues to help large corporate businesses is increase means of communication. The ability to spread, and share new information at a moments notices helps minimize downtime, and increase efficiency, which means larger profits in the end.