Abstract
IT has lost its magical power to provide competitive advantages and that corporations would be better off focusing on the risk of IT rather than looking at IT as a strategic asset – such was the conclusion of Carr (Carr, 2003). However, IT champion, Metcalfe, views IT investment as a source of competitive advantage that determines a path of sustainable excellence for a corporation. This paper explores the weight of evidence for both camps using event study and proposes that there is an optimal level investment in IT as a strategic asset beyond which it will cease to be a strategic asset in Sales and operations planning (S&OP).
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