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In our view, the most important thing that the CEO and senior management should understand about IT is its associated economics. It is naive to assume that other sharply discontinuous technologies will not offer similar transformation opportunities in the future. The firms were the first in their industries to see technology's transforming potential, they had the courage to invest in its performance, and they used it to gain a significant competitive edge.
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American Hospital Supply's distribution software and American Airlines' SABRE reservation system are examples of victories in past technologies. With this explosion of cost effectiveness has come the ability to do things truly differently. Even using a log scale on the vertical axis would be barely enough to tilt a vertical straight line enough to create something resembling the curves of the other two schematics in Carr's article. Carr's chart would look very different if he had tracked the number of MIPS or CPU cycles on the network from 1990 to 2002.
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This is impressive, but not nearly as dramatic as a computer produced in 2000, which runs 10 million times faster than a 1960s' computer.Ĭarr's graph on information technology stands as a subject lesson for Darrell Huff's well-known book How to Lie with Statistics. That is in sharp contrast to a train, which after eighty years moved six times faster than it had in the earlier period. The cost performance of IT technologies over the first forty years changed by roughly 10 7, and for the foreseeable future will continue to evolve at the same rate. It is worth noting that although these technologies mutated significantly (for trains, it meant moving from fifteen miles an hour to eighty miles an hour), the mutation was on a totally different and much smaller scale than IT's. The deeper societal impacts came during the second forty years, as society's insights on how to use the technology changed. Couple not knowing that you don't know with fuzzy logic, and you have the makings of Nicholas Carr's article.Ĭarr's examples of railroads and electric power played out over eighty years, (not forty, as he suggests), turning society, business organizations, and lifestyles inside out. The most dangerous advice to CEOs has come from people who either had no idea of what they did not know, or from those who pretended to know what they didn't.
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In no other area is it more important to have a sense of what you don't know than it is in IT management. HBR received a large number of positive and critical responses to Carr's piece including a letter we offer here from two professors at Harvard Business School. As a result, he said, companies should rethink how much they pay for IT given this reduced return on investment. Carr, ignited a firestorm in the opinion piece " Why IT Doesn't Matter" published in the May 2003 issue of HBR.Ĭarr's argument wasn't exactly that IT doesn't matter, but rather that it has become a commodity providing little competitive advantage. We become, neurologically, what we think.Harvard Business Review editor-at-large, Nicholas G. Descartes may have been wrong about dualism, but he appears to have been correct in believing that our thoughts can exert a physical influence on, or at least cause a physical reaction in, our brains. Their brains had changed in response to actions that took place purely in their imaginations-in response, that is, to their thoughts. he found that the people who had only imagined playing the notes exhibited precisely the same changes in their brains as those who had actually pressed the keys. Using a technique called transcranial magnetic stimulation, or TMS, Pascual-Leone mapped the brain activity of all the participants before, during, and after the test. he had the members of the other group sit in front of a keyboard for the same amount of time but only imagine playing the song-without ever touching the keys. He had the members of one group practice the melody on a keyboard for two hours a day over the next five days. He then split the participants into two groups.
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Pascual-Leone recruited people who had no experience playing a piano, and he taught them how to play a simple melody consisting of a short series of notes. “Another experiment, conducted by Pascual-Leone when he was a researcher at the National Institutes of Health, provides even more remarkable evidence of the way our patterns of thought affect the anatomy of our brains.