Managing+the+Digital+Firms(2)

Information Technology is a foundation for business ,although it has become the largest component of capital investment especially for digital firms.

__IT __ __capital investment, defined as hardware, software, and telecommunications equipment.__ 

IT is one of the most important tools along with innovations in organization and management, which they have been used by managers in these days for achieving significant gains in productivity.

If you want to achieve a strategic advantage over your competitors, to differentiate yourself from your competitor, IT is one way for achieving such advantages along with change in business practices and management.

In this case we can take Mr. Nicolas Carr ; who wrote an article titled  " IT  doesn’t Matter" , Carr argument in nutshell is that because every firm can obtain IT  in the marketplace, because any advantage obtained by one company can easily be copied by another company, Firms should reduce spending on IT , follow rather than leads IT <span style="color: black; font-family: Arial; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-US;"> in their industry, reduce risks by preparing for computer outages and security breaches, and avoid deploying <span style="color: red; font-family: Arial; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-US;">IT <span style="color: black; font-family: Arial; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-US;">in new ways. Most management information systems expert disagree, but we cant say that his opinion is wrong, it is absolutely true. there is a huge difference in firms' ability to use <span style="color: red; font-family: Arial; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-US;">IT <span style="color: black; font-family: Arial; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-US;"> effectively. <span style="font-family: Arial; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-US;">

There is a growing interdependence between a firm's ability to use IT and it's ability to execute corporate strategies and achieve corporate goals.