Just like Facebook hit the world community with its impressive services, another product is expected to emerge with even better services. As Carr (2003) discusses, the aspect of commoditization affects almost every product that arises in the market and Facebook is not exempted from the same. Since its emergence, other IT products which seem to be considerably better such as Twitter have been invented and Facebook is already undergoing commoditization. Just as Carr states, one of the most salient characteristics of infrastructural technologies is the rapidity of their installation. Spurred by massive investment, their capacity skyrockets sooner resulting in their prices falling, and hence their quick commoditization. Such infrastructural technology can be realized in the motor industry as one of the sectors that have achieved tremendous commoditization. Self-driving cars, for instance, is expected to hit the market with force considering the evolution in the industry from manual to automatic motors in the sector. With people considering the easier options, self-driving cars are expected to change human lives with their emergence before eventually undergoing commoditization.
In discussing his article, Carr (2003) mentions spending less, follow dont lead, and focus on vulnerabilities, not opportunities as the new rules for IT management. Noting that biggest IT companies, for instance Facebook and Google as being rare in realizing best financial results due to commoditization, Carr suggests less expenditure as the solution for the same. The rule of follow, dont lead also applies to Facebook and Google in that it encourages the companies on the basis of the longer the wait for an IT purchase the more the financial result. Just like other IT companies, Facebook and Google also focus on vulnerabilities rather than opportunities. However, such rules do not apply for Hershey as a foods corporation in that the industry applies exactly the opposite of the stated IT management rules.
Referring to Kubricks dark prophecy, Nicholas Carr, (2003) discusses how Google is only making the human being more stupid. They argue that over-reliance on computers for mediating human understanding of the world; it is the human intelligence that flattens into artificial intelligence. The authors assertion implies that through google people rely on the scholars view of the world rather than their experience and understanding of the world. As thus, people rely on artificial information about the world hence their own intelligence flattening into artificial intelligence. For instance, in line with Bruce Friedman belief, the use of computers has altered mental habits having adverse effects in medicine.
In their article Investing in IT, McAfee and Brynjolfsson, 2006, discusses how technology has changed competition in todays world market. Using a graph of the dollar value of total U.S. corporate IT stock, the authors show that technology has tripled competition in the industry. The same is revealed in Dow Jones U.S. Technology Total Stock Market Index which also indicates steady increase tripling between Jun 6, 2016, and Jun 1, 2017. Such regular changes are likely to be initiated by computers & electronics, insurance, and luxury goods industries.
In his article, Porter and Millar (1985) notes that information technology has had a powerful effect on competitive in any company in either cost or differentiation by affecting value activities or allowing the companies to gain a competitive advantage by exploiting changes in the competitive scope. Likewise, IT has caused a considerable impact on supply chain with such companies as eBay, Amazon.com, Cisco and Dell demonstrating the potential for top-line impact. Much of the exact benefit of IT in most companies is much more realistically resulting from the power of IT technologies which significantly compress time hence reducing costs throughout the supply chain.
References
Andrew McAfee and Brynjolfsson, Investing in IT, 2006.
Nicholas G. Carr, IT Doesnt Matter, 2003.
Nicholas Carr, Is Google Making us Stupid, 2003
Michael E. Porter and Victor E. Miller, 1985, How Information Gives You Competitive Advantage .
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