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Microsoft’s Research Project on IT Matters

In response to Carr's work, Microsoft commissioned a research project conducted by Keystone Strategies to investigate the correlation between IT capability and revenue growth using data from Brazil, Germany, UK and US companies. A link was evident for the US, Brazil and Germany but the results were inconclusive for the UK.

Some components of every business solution ?for example PC's and network infrastructure ?have arguably become commoditized as Nicholas Carr suggests.  However, other components, like ERP and CRM applications have not.  If they are flexible and easy to use, they offer organisations sustainable competitive advantage.  Not in and of themselves ?but in the way that they help employees focus on adding value to a business and the system’s ability to support regular, sometimes perpetual change in business processes.

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IT matters for small and mid-sized firms

Coincidentally, the improved affordability of IT means that it has never been a better time for mid-market businesses to take advantage of it. IT matters to SMEs more than ever. Now that many tools have become affordable to SMEs, they can make more money without growing in size and cost. The most obvious trait of SMEs is their flexibility. Now when advanced and modern IT solutions are more

affordable and easier than ever, they can make a quick strategic decisions.

A great example is selling online. A small business using SAP Business One can decide on January 1st  that the best way to expand its retail business is selling using discounted prices online, then, 2-3 weeks later and with 15,000 dollars investment, the online store can be up and running, offering similar features to a fully fledged system costing ten times that much. If the same business wanted to use an alternative growth option, like opening a discounted store, it would have cost 10 to 20 times more, and would have taken 3-6 months. 

IT APPLICATIONS

Wal-Mart

See how some-one at Wal-Mart pioneered the SWAS (Store within a Store). Click on SWAS

Fed-Ex

See how Fed-Ex is using the wireless technology. Click Here

UPS

UPS invested over 30 million dollars in 2003 to improve its package flow system using IT. Click

Amazon CEO on Better Technology video here