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IT Doesn't Matter
IT Matters
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For the full story, also see the landmark book

Business Process Management: The Third Wave

This book is dedicated to business leaders who want go deeper into the provocative ideas asserted in the "IT Doesn't Matter" article in the Harvard Business Review. IT's not about the last 50 years, IT's about the next 50 years.

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A torrent of debate ensued in the weeks following Harvard Business Review's May 2003 publication of Nicholas Carr's article, "IT Doesn't Matter." Numerous responses and rebuttals began pouring in from around the world, including those from the likes of Bill Gates, Michael Dell, and just about every business and technology publication on the planet, even daily newspapers.

Carr makes several accurate observations that touched a nerve in the IT industry, eliciting some sharp responses that prompted eWEEK's John Taschek to write, "Industry partisans who have read it but can't accept much of it as true are either awash in denial or so obsessed with self-preservation that they are blinded by the facts."

By writing the article, Carr has rendered a great service to the IT industry--a wake-up call. We thank him for that, and we thank the many who have stepped up and entered the debate (see Appendix). Their insights and his have helped us to connect the dots in order to provide a more complete picture of the role of information technology in business. For although Nicholas Carr certainly created a stir, his analysis leaps from assertions about the IT industry to drawing conclusions about the business use of IT as an enabler of competitive advantage. In consequence, he is led to prescriptions that focus on the past--the first fifty years of the business and IT relationship--and he has missed the breakthrough that sets the stage for the next fifty years.

So, in the spirit of HBR Editor Thomas A. Stewart when he wrote, "Our ideal reader wants give-and-take, argument and counter-argument, the better to understand the issues," this book's critical analysis of Carr's thesis sets the record straight. It explains the breakthrough of business process management, which is the epicenter of IT going forward, and provides a message that is both urgent and critical for business leaders caught up in the great IT backlash from the Wall Street-driven overspend of the go-go 1990s.

Howard Smith
Peter Fingar
June 2003