Does Nicholas Carr still matter?

Nicholas Carr calls it "the debate that won't die," the much-needed discussion of the value of information technology in today's enterprise world. Carr, of course, is author of the provocative book, Does IT Matter?, which followed a similarly provocative piece in Harvard Business Review.

Indeed, the debate won't die, and that's a good thing. Let's keep it going. Just the other day, Carr and Dell CEO Kevin Rollins were squared off in a new point/counterpoint-style article posted in Fortune Small Business. An excerpt from the exchange:

CARR: "Over the years, modern computing has become more accessible, more standardized, more homogenized. It is getting cheaper and cheaper all the time. And that just means that it's harder for companies to sustain an advantage by being a technology leader. As these trends play out, it becomes easier and easier for other companies to catch up. So as we move to this next stage, we're going to see even smaller companies being able to catch up. This, I think, will further neutralize any advantage that IT provides."

ROLLINS: "That's absolutely wrong. If that's true, then why don't all companies perform the same way? They've all got access to this standard technology! When you take those standard components, which are now low cost, the question becomes, Which technology do you implement? and then, What you do with it? So IT does matter. But now what counts most is the execution and implementation of all the standard pieces. And you can do that poorly. You can buy the wrong pieces, or you can buy the right pieces and do it well."

Carr's argument makes a lot of sense when considering the commoditization of hardware, operating systems, networks, and storage. We've all become jaded by the breathless (and eye-rolling) claims of "revolutionary" technologies, paradigm shifts, and inflection points. The "Does IT Matter?" debate is a debate we need to keep having, because it's the ultimate hype filter.

However, IT innovation doesn't come from what you have, but what you do with it. Just about everyone now has video equipment and software, and can make their own full-length, studio-quality movies. But last time I checked, there hasn't been an unusually large surge of new Steven Spielbergs or Spike Lees coming on the scene.

Carr correctly states that IT should not get full credit for corporate success. But no one has ever expected IT to solely responsible for a company's rise or fall. Adroit, inspired management, supported by the right IT tools, makes the difference. A company that smartly and innovatively leverages its IT in new and creative ways, as part of an enlightened management strategy, will move to the head of the pack. Carr points out that Wal-Mart's success isn't a result of IT itself, but of "a complex, tightly integrated, and difficult-to-copy combination of processes and activities." Likewise, Dell made use of IT in its build-to-order strategy, but its success came from efficient end-runs around traditional distribution channels.

It takes inspired leaders and managers -- with the right tools at their disposal -- to seize such advantages. Notably, few companies have truly leveraged service-oriented architecture to its fullest potential, or built business intelligence systems that can answer new questions and expose new ideas for moving the business forward. Companies are just beginning to explore methodologies and technologies -- SOA being one of them -- that can potentially boost development and processing capabilities at a mere fraction of current costs - a sure way to boost productivity and take business to the next realm.

Then there's the rise of the entrepreneurial economy. Nowhere have opportunities been greater over the past two decades that in information technology services, software, and hardware. At this point, IT has lowered the barriers to entry across all industries, to the point where the smallest microcompanies, comprised of a few individuals, working remotely and interconnected to networks of partners and contractors, can compete against the biggest players in the global economy. Carr says this is leveling the playing field with IT, but this also accounts for some of the issues larger enterprises have with the competitiveness of their IT implementations. The larger enterprises are often simply trying to keep up.

Yes, Nicholas Carr still matters, and he may be correct when he talks about the commoditization of the first generation of IT, but we've only just begun to see where the next generation of technology can take us.