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IT Doesn't Matter의 일부분입니다.
제발 부탁드립니다.
Although more complex and malleable than its predecessors.
IT has all the hallmarks of an infrastructural technology.
In Fact, its mix of characteristics guarantees particularly rapid commoditization.
IT is, first of all, a transport mechanism it carries digital information just as railroas carry goods and power grids carry
electricity.
And like any trasnport mechanism, it is far more valuable
when shared than when used in isolation.
the history of IT in business has been a history of increased interconnectivity and interoperability, from mainframe timesharing to minicomputer_based local area networks to broader Ethernet networks and on tothe internet.
Each stage in that progression has involved greater standardization of the technology and, at least recently greater
homogenization of its functionality.
For most business applications today, the enefits of customization would be overwhelmed by the costs of isolation.
IT is also highly replicable indeed, it is hard to imagine a more perfect commodity than a byte of data_endlessly and perfectly reproducible at virtually no cost.
The near infinite scalability of many IT functions. When conbined with technical standardization, dooms most proprietary applications to economic obsolescence.
Why write your own application for word processing or e-mail or, for that matter, supplychain management when you can buy a ready-made, state of the art application for a fraction of the cost?
But it's not just the software that is replicable.
Because most business activities and processes have come th be embedded in software, they become replicable, too.
When companies buy a generic application, they buy a generic process as well.
Both the cost savings and the interoperability benefits make the sacrifice of distinctiveness unavoidable.
the arrival of the internet has accelerated the commoditization of IT by providing a perfect delivery channel for generic applications.
More and more, companies will fulfill their IT requirements simply by purchasing fee-based "web-services" from third parties-similar to the way they currently buy electric power or telecommunications services.
Most of the major business-technology vendors from Microsoft to IBM, are trying to position themselves as companies that will control the provision of a diverse range of business applications over what in now called, tellingly, "the grid."
Again, the upshot is ever greater homogenization of IT capabilities, as more companies replace customized applications withgeneric ones.
Finally, and for all the reasons already discussed, IT is subject to rapid price deflation.
When Gordon Moore made his famously prescient assertion that the density of circuits on a computer chip would double every two years, he was making a prediction about the coming explosion in processing power.
but he was also making a prediction about the coming free fall in the price of computer functionality. The cost of processing power has dropped relentlessly, from $480 per million instructions per second(MIPS) in 1978 to $50 per MIPS in 1985 to $4 per MIPS in1995, a trend that continues unabated.
similar declines have occurred in the cost of data storage and transmission. the rapidly increaseing affordability of IT functionality has not only democratized the computer most important potential barriers to competitors.
even the most cuttingedge IT capabilities quickly become available to all.
It's no surprise, given these characteristics, that IT's evolution has closely mirrored that of earlier infrastructural technologies.
Its buildout has been every bit as breathtaking as that of the railroads.
consider some statistics During the last quarter of the twentieth centruty, the computational power of a microprocessor increased by a factor of 66,000. in the dozen yearsfrom 1989 to 2001, the number of host computers connescted to the internet grew from 80,000 to more than 125 million. over the last ten years.
the number of sites on World Wide Web has grown from zero to nearly 40 million.
and since the 1980s, more than 280 million miles of fiber-optic cable have been installed enough, as BusinessWeek recently noted, to "circle the earth 11,320 times."
As with eariler infrastructural technologies, IT provided forward-looking companies many opportunities for competitive advantage early in its buildout, when it could still be "owned" like a proprietary technology.
A classic example is American Hospital Spply. A leading distributor of medical supplies, AHS introduced in 1976 an innovative system called Analytic Systems Automated Purchasing, or ASAP, that enabled hospital to order goods electronically.
Developed in-house, the innovative system used proprietary software running on a mainframe computer, and hospital purchasing agents accessed it through terminals at their sites.
Because more efficient ordering enabled hospitals to reduce their inventories and thus their cost-customers were quick to embrace the system.
and because it was proprietary to AHS, it effectively locked out competitors. for several years, in fact, AHS was the only distributor offering electronic ordering, a competitive advantage that led to years of superior financial results.
from 1978 to 1983 AHS's sales and profits rose at annual rates of 13% and 18%, respectively well above industry averages.
while no one can say precisely when the buildout of an infrastructural technology has concluded, there are many signs that the IT buildout is much closer to its end than its beginnings.
first, IT's power is outstripping most of the business needs it fulfills.
second, the price of essential IT functionality has dropped to the point where it is more or less affordable to all.
third, the capacity of the universal distribution network has caught up with demand-indeed, we already have considerably more fiber-optic capacity than we need.
fourth. IT vendors are rushing to position themselves as commodity suppliers or even as utilities.
finally, and most definitively, the investment bubble has burst, which historically has been a clear indication that an infrastructural technology is reaching the end of its buildout.
a few companies may still be able to wrest advantages from highly specialized applications that don't offer strong economic incentives for replication, but those firms will be the exceptions that prove the rule.
at the close of the 1990s, when internet hype was at full boil, technologists offerd grand vision of an emerging "digital future."
It may well be that, in terms of business strategy at least, the future has alreadyt arrived.
IT Doesn't Matter의 일부분입니다.
제발 부탁드립니다.
Although more complex and malleable than its predecessors.
IT has all the hallmarks of an infrastructural technology.
In Fact, its mix of characteristics guarantees particularly rapid commoditization.
IT is, first of all, a transport mechanism it carries digital information just as railroas carry goods and power grids carry
electricity.
And like any trasnport mechanism, it is far more valuable
when shared than when used in isolation.
the history of IT in business has been a history of increased interconnectivity and interoperability, from mainframe timesharing to minicomputer_based local area networks to broader Ethernet networks and on tothe internet.
Each stage in that progression has involved greater standardization of the technology and, at least recently greater
homogenization of its functionality.
For most business applications today, the enefits of customization would be overwhelmed by the costs of isolation.
IT is also highly replicable indeed, it is hard to imagine a more perfect commodity than a byte of data_endlessly and perfectly reproducible at virtually no cost.
The near infinite scalability of many IT functions. When conbined with technical standardization, dooms most proprietary applications to economic obsolescence.
Why write your own application for word processing or e-mail or, for that matter, supplychain management when you can buy a ready-made, state of the art application for a fraction of the cost?
But it's not just the software that is replicable.
Because most business activities and processes have come th be embedded in software, they become replicable, too.
When companies buy a generic application, they buy a generic process as well.
Both the cost savings and the interoperability benefits make the sacrifice of distinctiveness unavoidable.
the arrival of the internet has accelerated the commoditization of IT by providing a perfect delivery channel for generic applications.
More and more, companies will fulfill their IT requirements simply by purchasing fee-based "web-services" from third parties-similar to the way they currently buy electric power or telecommunications services.
Most of the major business-technology vendors from Microsoft to IBM, are trying to position themselves as companies that will control the provision of a diverse range of business applications over what in now called, tellingly, "the grid."
Again, the upshot is ever greater homogenization of IT capabilities, as more companies replace customized applications withgeneric ones.
Finally, and for all the reasons already discussed, IT is subject to rapid price deflation.
When Gordon Moore made his famously prescient assertion that the density of circuits on a computer chip would double every two years, he was making a prediction about the coming explosion in processing power.
but he was also making a prediction about the coming free fall in the price of computer functionality. The cost of processing power has dropped relentlessly, from $480 per million instructions per second(MIPS) in 1978 to $50 per MIPS in 1985 to $4 per MIPS in1995, a trend that continues unabated.
similar declines have occurred in the cost of data storage and transmission. the rapidly increaseing affordability of IT functionality has not only democratized the computer most important potential barriers to competitors.
even the most cuttingedge IT capabilities quickly become available to all.
It's no surprise, given these characteristics, that IT's evolution has closely mirrored that of earlier infrastructural technologies.
Its buildout has been every bit as breathtaking as that of the railroads.
consider some statistics During the last quarter of the twentieth centruty, the computational power of a microprocessor increased by a factor of 66,000. in the dozen yearsfrom 1989 to 2001, the number of host computers connescted to the internet grew from 80,000 to more than 125 million. over the last ten years.
the number of sites on World Wide Web has grown from zero to nearly 40 million.
and since the 1980s, more than 280 million miles of fiber-optic cable have been installed enough, as BusinessWeek recently noted, to "circle the earth 11,320 times."
As with eariler infrastructural technologies, IT provided forward-looking companies many opportunities for competitive advantage early in its buildout, when it could still be "owned" like a proprietary technology.
A classic example is American Hospital Spply. A leading distributor of medical supplies, AHS introduced in 1976 an innovative system called Analytic Systems Automated Purchasing, or ASAP, that enabled hospital to order goods electronically.
Developed in-house, the innovative system used proprietary software running on a mainframe computer, and hospital purchasing agents accessed it through terminals at their sites.
Because more efficient ordering enabled hospitals to reduce their inventories and thus their cost-customers were quick to embrace the system.
and because it was proprietary to AHS, it effectively locked out competitors. for several years, in fact, AHS was the only distributor offering electronic ordering, a competitive advantage that led to years of superior financial results.
from 1978 to 1983 AHS's sales and profits rose at annual rates of 13% and 18%, respectively well above industry averages.
while no one can say precisely when the buildout of an infrastructural technology has concluded, there are many signs that the IT buildout is much closer to its end than its beginnings.
first, IT's power is outstripping most of the business needs it fulfills.
second, the price of essential IT functionality has dropped to the point where it is more or less affordable to all.
third, the capacity of the universal distribution network has caught up with demand-indeed, we already have considerably more fiber-optic capacity than we need.
fourth. IT vendors are rushing to position themselves as commodity suppliers or even as utilities.
finally, and most definitively, the investment bubble has burst, which historically has been a clear indication that an infrastructural technology is reaching the end of its buildout.
a few companies may still be able to wrest advantages from highly specialized applications that don't offer strong economic incentives for replication, but those firms will be the exceptions that prove the rule.
at the close of the 1990s, when internet hype was at full boil, technologists offerd grand vision of an emerging "digital future."
It may well be that, in terms of business strategy at least, the future has alreadyt arrived.
