GE, DELL, INTEL, AND OTHERS: the

competitive advantage of IT
Statement made by Nicholas Carr
IT is nothing more than the infrastructure
of new business, similar to railroads,
electricity etc.
Once innovative applications of IT are
now a necessary cost.
Risk is the over expenditure on IT and not
under usage if it.
Statement made by Jeff Immelt, CEO, GE
GE is a service oriented company and they
concentrate more on IT as compared to plant
and equipment.

Investment of 2.5 to 3 billion dollars give a

return of 20 percent.
Statement by Michael Dell, CEO,
DELL
Improper usage of IT can totally screw up the
business.

Itsnot that you overspend the money on IT and you

get a profitable output.

Itsnot that you pour out the money and gold comes
out (you can screw it up all)
Over view
Carr actually misunderstood IT as bunch
of networks and computers.

Carr was actually correct in viewing IT as

a hardware infrastructure.
Statement by Charles Fitzgerald, GM
Microsoft
Source of competitive advantage in
business is what you do with the
information that is provided to you by IT.

He said that “I have never heard a

company make such a claim”.
 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?

I do not agree with Nick Carr, because IT is being used in every

field, business, education etc. IT boosts up the work performance
with less effort and greater productivity.

 Ithelps in communication through video conferencing, blogs, pod

casting, e-mails etc.

 We can develop business strategies, develop products and services

and capabilities that give a company competitive advantage over
others.

 Improve the operations and promote innovations , erect barriers to

entry that would discourage other companies from entering the
market
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 no?

I agree with Michael Dell’s statement that without the proper

use of the equipment, the benefits of the business through
Information technology provides a platform for a company to
connect the global world with Internet.

 Internet has a wide range of customers, buyers, service

providers, technical staff, etc.
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.

Ways to provide a competitive advantage may include:

 Improve the customer relationship management system.
 Create new uses for information to remain competitive.
 Leveraging the knowledge-capital as an integral part of strategic
planning.
 Determining the best mix of knowledge, software and hardware to
be highly competitive.
 Improve the value chain for the company.
  Wal mart uses inventory control system to keep in pace with all the
departments.