Proprietary Technologies And Infrastructural Technologies

In 2003, Carr published a controversial article â€Å"IT Doesn’t Matter† that put IT in a different light. Carr makes a distinction between proprietary technologies and infrastructural technologies. He argues that proprietary technologies are those that can be â€Å"actually or effectively owned by a single company† (Carr, 2013, p. 42). Proprietary technologies can create strategic advantage as long as they remain protected, and can provide companies with a lot of profit. Meanwhile, Infrastructural technologies provide greater value when shared. Technologies move from proprietary to infrastructure as they mature. Moreover, Carr asserts that IT has lost its strategic value. He argues that IT is no longer strategic because it has stopped to be scarce goods. In addition, he mentions that profit margins on IT related innovations will disappear. This argument is based on capital intensive goods such as railroads and steam engines. I disagree with this statement. IT should not be compared to such goods. The marginal cost of IT products does not increase with greater scale. Thus, any business that can decrease marginal cost by installing IT can make IT investments profits large and gain improved strategic value. Furthermore, Carr argues that IT is primarily transport technology, and because everyone got access to IT, it’s no longer offers an advantage. I disagree with Carr. IT provides the primary means for increasing the companies’ knowledge capital. IT helps businesses manage â€Å"theShow MoreRelatedProprietary Technologies Vs. Infrastructural Technology1246 Words   |  5 PagesProprietary technologies vs. Infrastructural technology Proprietary technologies can be owned, actively and effectively, at times by a single company. For instance, a pharmaceutical holding a patent on a particular compound that is the basis for a drug is an example of proprietary technologies. Infrastructural technology on the other hand provides more value when shared rather than used by a single organization. A company having all the rights to building railroads is an example of InfrastructuralRead MoreIt Doesnt Matter Summary Essay936 Words   |  4 Pagesearlier technologies like railroads and electricity. At the beginning of their evolution, these technologies provided opportunities for competitive advantage. However, as they become more and more available Ââ€" as they become ubiquitous Ââ€" they transform into commodity inputs, and lose their strategic differentiation capabilities. From a strategic viewpoint, they essentially become invisible. Carr distinguishes between proprietary technologies and what he calls infrastructural technologies. ProprietaryRead MoreI. T DoesnT Matter By Nicholas Carr984 Words   |  4 Pagesrequisite for value, Carr draws distinction between infrastructural and proprietary technologies. 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