One of the things I recall from B-School was the potentially inverse relationship between levels of LOB industry IT systems standardization on the one hand (generally a good thing) and levels of strategic business competitive differentiation (also a good thing, for the most part) on the other. Another way of saying this – the more that every firm in a given sector uses the same scalable and cost effective IT technology, the less of an advantage using that technology provides for ‘being special’ in the market (woe to he that is still using Wordperfect 6.0 for legal memos, of course, falling too far behind still can be quite bad).
Cloud computing environments, where so much application and systems infrastructure may actually be shared with competitors (in a sense even co-owned) may be a perfect case in point. Chris Romano of Law Technology News put out a nice piece on that topic; with respect to how the cloud may impact law firm CIO’s. I excerpt the first portion of his article below, check out the whole piece here.
In the cloud era, we need to find ways of being differentiated that are not just based on better systems than the next guy. Can I hear you say “better client service,” for example?
“As Law Firms Fly Into Cloud Computing, Will CIOs Matter?
Chris Romano
Law Technology News
April 14, 2011
When Harvard Business Review published Nicholas Carr’s 2004 book, Does IT Matter?, the reaction was incendiary. Carr argued that technological, economic, and competitive forces were combining to transform the role IT plays in business, and that technology had become a commodity that doesn’t provide competitive advantages. Two Harvard business professors were among the many readers who declared Carr, in essence, clueless.
At the time, the legal IT community was not amused. How dare he! We support vast infrastructures with multiple application platforms used by highly intellectual users. To show Carr how wrong he was we invested in greener data centers, virtualization, and, of course, cloud computing.
But Carr’s controversial commentary resonates even more strongly today. In fact, let’s update the original question, “Does IT Matter,” to “Do CIOs Matter?” Cloud computing (where firms use web-based software maintained by the vendor) is the antithesis of Carr’s basic premise that scarcity of a function provides a competitive advantage. With cloud computing, firms do not need scores of IT personnel to install, deploy, permission, upgrade, integrate, and repair every technology the firm wants its personnel to use. The cloud makes law firms small and large citizens of the cyber world…”
Read the full story here.