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Does IT Matter? Information Technology and the Corrosion of Competitive Advantage by Nicholas G. Carr (Harvard Bussines School Press, Boston Massachusetts, 2004. PP. XVII + 191, ISBN 1-59139-444-9)
Budi, Andy Susilo Lukito
Article from Journal - ilmiah nasional - tidak terakreditasi DIKTI - atma jaya
Jurnal Ekonomi dan Bisnis vol. 6 no. 1 (Feb. 2006)
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Information Technology (iT) investments are considered as high risk type of investment Failing to deliver the project outcome on time, on budget and with the right functionalities will lead organizations into an unfavorable situation that can cause bankruptcy in several cases. For example, NAB had suffered In an overrun project that cost A$ 400 million over the budget The effect had been reflected in the downfall of their market share price (Cornell 2002, Kavanagh 2002). Another example, Fox Meyer had to close its business because of its ERP implementation project overrun with over US$ 100 millions from the budget (Scott and Vessey 2002). Furthermore, Standish Group (1999) also reported their findings throughout 3 different years, 1994, 1996 and 1998 about high failure rate in the Information System (IS) projects. Although there was an Increasing frend rate in the successful cases over the three periods, due to the effective implementation of IT project management the average rate was still below 30% compared to the unsuccesful or challenged cases. These examples dearly show the iceberg of the runaway problem of conducting and undergoing iT projects.
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