Jon Gould explains why IT is not the commodity some claim it has become. Technology can be a differentiator, if you put creative vision behind it

In 2003, the Harvard Business Review published an article entitled 'IT doesn't matter' by its former executive director Nicholas Carr. This article became the book Does IT Matter?, and Mr Carr's thesis is that IT has simply followed earlier infrastructural technologies, like railways and electric power, from providing strong competitive advantage into being a simple 'cost of doing business'.


Understandably, this view has been met with scepticism by many, especially technologists. But, contentious headlines aside, there are some good ideas in Mr Carr's book that law firms need to address.


His argument is strongest when applied to the plumbing (the 'T' in IT) where the hardware, the network and the underlying operational software do not provide strategic or competitive advantage. These elements are absolutely necessary - no law firm could exist today without such resources - and should rightly be viewed as commodity items.


Many law firms have already started the move into partial outsourcing, taking hardware, software and even services on a metered basis from a variety of providers. Law firms should be able to see cost savings in this area as commoditisation continues.


Mr Carr is weakest in the 'information' part of IT - the value-added part of the process. In the early sections of the book, he ring-fences his thesis by excluding the flow of information through the technology, but this is meaningless when so much of the value of IT lies in its ability to makes sense of large quantities of data. Amazon's use of data warehousing technology to increase 'stickiness' with customers seems to provide it with competitive advantage. There are numerous examples within the legal profession of the application of IT to win, retain and increase revenue from clients.


He acknowledges that information and talent often form the basis of business advantage and notes that, as the strategic value of technology wanes, the skill with which information is used within an organisation will rise.


But he fails to address the beneficial effect of the visionary application of technology for competitive advantage, and he appears not to recognise that the future will almost certainly bring developments that may have as much effect as the Internet in the 1990s.


The visionaries, those who used the Internet's coming as a springboard, will equally seek out new technologies to drive growth in their own organisations in the future. Effective IT - and this need not mean expensive IT - can enable you to reach markets and clients more quickly and more effectively, providing you with competitive advantage. This advantage may be relatively short-lived, as the ability rapidly to replicate any success increases, but an innovative IT function in a law firm can help the firm to stay ahead of the pack.


The dangerous road to follow is the monolithic bespoke IT project so frequently cited as running over-budget or over-time in the press. For most law firms the notion of large-scale bespoking is anathema. Far more prevalent are projects tailoring or building elements within standard applications, or the integration of these standard applications so that they work together. In this, law firms are typically relatively low spenders in comparison with financial services organisations - many are extremely cost effective.


Ultimately, Mr Carr's book is useful as a catalyst, as a way to engender a meaningful discussion with the board on the true value of IT and ensure that IT expenditure remains focused, controlled and aligned with the business.


But there is little need for technologists to become too defensive over Mr Carr's theories - IT remains, sadly, too complex at present to be the commodity he describes. There remains plenty of scope for the talented chief information officer or chief technology officer with vision to deliver real value as well as, potentially, competitive advantage for the employer.


Jon Gould is IT director at City-based law firm Charles Russell