Discussion of Carr's Theory on Information Technology

Professor Nicholas Carr has made the argument that information technology is not a source of competitive advantage, in his articles "IT Doesn't Matter" and "IT Still Doesn't Matter". Carr argues that information technology is following the pattern of similar previous technologies which eventually, over time, lose their significance and no longer produce a competitive advantage.

In my previous blogs, I have given many examples of strategic uses of information technology in the field of accounting. Based on the information I have previously reported, I strongly disagree with Carr's theory. I believe that information has a significant effect on the field of accounting. Developments are still currently taking place, and over the past 5 years significant changes have been made in the public accounting industry regarding technology. Accounting professionals, including auditors and tax accountants have come to depend upon technology in order to successfully serve their clients. This technology allows for more efficient servicing of these clients through the use of information systems such as GoTax and Accounting Information Management (AIM). These programs allow accountants to store and process client information effectively and efficiently. I strongly believe that these systems give accountants a competitive advantage. A small start up firm would not be able to compete without implementing a strong information system such as AIM to store client data. Technology has advanced the field in terms of competition and efficiency. To say that information technology doesn't matter is overlooking the importance of technology in our world today, including the various uses in the field of accounting.