"Don't Lead, Choose Wisely, and Follow Quickly" Review of Carr's IT in Business Ideas

Carr (2003) is correct that competitive advantage is short-lived with information technology (IT). At best, a company can gain an advantage as either an early-adopter or proprietor of a technology. However, for most this is a long shot and unnecessary for success. Carr is keen to make the analogy between IT and prior technologies such as the railroad and telegraph. He should have made a stronger point that IT is exactly like those technologies, in that it has also become communal. Since we read Carr's article in hindsight, we know that much of today's IT has since adopted the open source approach (e.g. Linux, Drupal, iOS, and Android and to name a few widespread IT impactors). Carr wrote that we would pay for new technology but it would be cheap. Instead it is open to everyone and free (albeit with several indirect costs). Thus, with today's IT we are able to gain advantage from the work of many, and avoid needless technology battles in competition. 

In the current IT paradigm, a company must pick out the most essential IT functions and choose what existing IT application wave to "invest" in. Carr's recommendation to save money on investing in equipment and software is very much applicable today. For most businesses, effort is best spent in using applications that already exist, and applying those to support the unique characteristics of their business. And, a responsible business should contribute to the open source projects where they can. 


The "follow, don't lead" mantra espoused by Carr is even more applicable with the open source movement. It is important to jump on the correct wave; to be at the forefront is a risky, often disadvantageous, position to be in. If the project fails to build a critical user base, the time and monetary investment can be lost quickly. With this in mind, Carr could have made a stronger point to be relatively quick to follow, because the technology world is evolving so rapidly that slowness can lead to a competitive disadvantage. In fact, he even recommends delaying IT decisions in order to save money from the Moore's Law effect. This is far to risky. Instead, Carr's mantra should read "don't lead, choose wisely, and follow quickly."


Carr, N. G. (2003 May). IT Doesn't Matter. Harvard Business Review, 41-49