Research Paper Assignment Example | Topics and Well Written Essays - 750 words

Assignment - Research Paper Example Therefore, arguments that Information technology has lost its strategic value are baseless. According to Carr, companies were investing too much of their resources on IT (Carr, 2003). He therefore argued that it’s the high time that they turn their focus on risks rather than competitive advantage. However, this is not the case. After the entry of information technology, there was a boom as each company wanted to align itself effectively in the market. At the same time, globalization intensified as a result of liberalization of markets, efficient flow of information, and integration of economies. Consequently, companies were expanding their markets and operations in order to expand their sources of revenues. Therefore, they needed the necessary IT to enable them to monitor and manage various operations by the subsidiaries. This increased the demand. However, over the years, companies have reduced their spending on IT and have now focused on improving the existing infrastructure. Therefore, it is not right to argue that the value of information technology has diminish ed. On the contrary, new firms still invest heavily on IT. Nevertheless, with time they reduced this spending spree and focus on training and equipping their subordinates with the necessary skills to enable them maximize the returns through the use of IT. Carr argues that the greatest IT risk is overspending (Carr, 2003). He states that this puts the company at a cost disadvantage. However, this is not the case with the changes being experienced in the market. Initially, there were only few firms in the market. However, with the increasing levels of liberalization, multinational companies have entered different markets across the world in order to reduce the risks and uncertainties associated with concentrating on a single market. Research indicates that these companies