In this blog post, we examine the modern significance of IT by reviewing Nicholas G. Carr’s argument in “IT Doesn’t Matter” and the changes that have occurred over the past decade.

The Origins of the IT Debate and Key Arguments

In an article published in the Harvard Business Review in May 2003, Harvard University professor Nicholas G. Carr argued that “IT no longer matters.” He predicted that just as electricity and railroads were initially considered vital resources due to their scarcity but became invisible once they became widespread and part of society’s infrastructure, IT would follow the same path and lose its significance.
This claim sparked significant controversy in the business and IT communities immediately after its publication. Executives from various IT companies, including Microsoft’s CEO, strongly refuted it, and the debate over the strategic importance of IT continued for a long time afterward.
Carr cited the widespread adoption of computers—specifically, the increase in the number of personal computers—as the basis for his argument. His logic was that since computers had become commonplace, the scarcity of IT had disappeared, and therefore its strategic value had diminished. However, this argument was criticized as an overly narrow interpretation that focused solely on the quantitative proliferation of hardware.
IT consists of various layers, including not only simple devices but also software, services, data analysis capabilities, and the organizational capacity to operate and manage them. The widespread adoption of hardware does not automatically negate the scarcity or strategic value of all these elements.
For example, commercial tools developed for specific functions, such as statistical analysis software, remain expensive and have limited accessibility. Some specialized software is protected by patents and licenses, requiring companies or institutions to invest significant costs and specialized personnel to use them. In this regard, the scarcity of IT has not completely disappeared.

Why Is IT Still Important?

First, the scarcity of IT persists in certain areas. Even with the widespread adoption of basic elements like operating systems or office software, advanced software, algorithms, and security technologies tailored to specific industries or tasks remain limited and specialized, thereby retaining their value.
Second, with the emergence of cloud computing, the role of IT has actually been strengthened. Cloud computing allows individuals and businesses to store their data on servers over the internet and access it from various devices as needed. For example, the approach of centrally storing personal and work data—as seen with Google Drive—and utilizing it across multiple devices is extremely useful for companies to integrate and manage interdepartmental materials and collaborate remotely. Many companies and government agencies are building cloud environments to integrate and utilize data.
Third, with the advent of the Big Data era, the volume and variety of data have increased exponentially, and the ability to store, analyze, and utilize this data has become central to corporate competitiveness. The proliferation of social networks and smartphones has led to an explosive increase in data generated by individuals, and companies are analyzing this data to provide personalized services and marketing.
Amazon’s recommendation system is a prime example of this, driving high purchase conversion rates by analyzing customers’ past purchases to provide personalized recommendations. Research also shows that companies that effectively utilize data have an advantage in terms of business performance. Therefore, technology capable of storing, processing, and analyzing data, as well as personnel who can integrate that technology with business objectives, are essential.
Consequently, while some companies have reduced their IT budgets or downsized their IT organizations over the past decade in line with Carr’s argument, those that have strategically leveraged IT have achieved greater success. The widespread adoption of smartphones and the development of platforms have made business operations increasingly dependent on IT, and new environments such as cloud computing and big data will continue to amplify the importance of IT in the future.
Therefore, it is realistic to view IT as still being important—indeed, its importance is expanding in new and evolving ways.