Does IT matter?

2024-04-08 01:42:11

How IT can benefit digital transformation

Nearly two decades back in 2003, American writer, journalist Nicholas G Carr raised the critical question “Does IT matter?”. His article was published in Harvard Business Review and very widely discussed amongst business leaders, policy makers and educationists. However, the query never ends, even today, whenever there is an issue of adaptation of technology appears, the first question business owners / leaders ask - how this can benefit my business?

The essence of this query “Does IT matter?” is far reaching. It questions the strategic importance of IT for a business. Arguments followed that each earlier technological innovation – Steam power, Electricity, Oil & Gas, Assembly line manufacturing etc. caused Industrial Revolution; industry and business advanced far ahead than that existed before. Who benefited? Of course, the whole industry as well as customers benefitted. The early adopters of innovation became Leaders, and eventually all innovations become commodity – just tap to access technology, public distribution. 

We normally associate industrial transformation with the adoption of new technology, but Technological innovations have never transformed an industry on their own. When business Leaders create a business model which could link technology with emerging market needs, the transformation happened.

Early adopters faced cost pressure, accessed innovative technology at high Capital cost and with high Risk. Due to successful adoption of technology,  they became leaders on their own right and recovered many times more than what they spent. Late adopters got a commoditised technology at much lower cost, but they remained followers. In a nut shell, Technology at its first appearance becomes distinctive advantage but with high cost & risk. As technology becomes matured and commoditised it becomes essential to keep pace with competitors, eventually technology becomes a Cost of doing business.

The same is true for Information Technology (IT). For some, IT is the differentiator, propeller of growth and for some IT is a Cost. It is the business leaders / owners with awareness and interest in IT, who decides how much to spend for innovation & growth; and how much to sustain. A judicial mix based on Vision and business Strategy is key to attain digital transformation.

This is the opportune moment when MSME business leaders must spend some time to understand the zig saw puzzle of IT and take informed decision, help themselves for digital adoption.