When Should We NOT Incorporate IT?

With the CEO memo due today, I was obviously thinking a lot about the role of IT in business and business strategy nowadays. I came across an interesting article in Businessweek that suggests maybe it's not always a good thing to rush to implement technology into standard business practices.

Many foreclosure proceedings are getting held up due to lack of sufficient (physical and legal) documentation. Back when the market was booming, an overwhelmed mortgage industry decided to create a digital database to handle all the paperwork. However, once information and promissory notes were entered into the database, they were promptly shredded, to "avoid confusion immediately upon conversion to an electronic file." This may have created loopholes in terms of bringing foreclosure proceedings against someone when no physical record of a promissory note exists. In the legal system, you must see the note to confirm the ownership of the property being foreclosed. No note means lots of problems.

I thought this article was really interesting because it highlighted the point that IT can be very effective for businesses-- but only if it is used effectively. The mortgage industry uses technology to organize, code, monitor, and store millions of records. Computer programs can help cut down on the time it takes to assemble information and data. However, many of the current problems arose due to the attempt to keep the flow of information going, even if it meant cutting corners.