IT a source of competitive advantage

You are traveling on a plane to San Francisco for an industry conference. Given that it is a long flight, the person seated next to you strikes up a conversation. When the inevitable, so-what-do-you question arises, you mention you are an MBA/MCIS student studying the value of Information Technology. “Hah,” says an eaves dropper in the next row, “IT value! What a big bunch of malarkey! I remember reading a few years back that a bunch of researchers found that there was no relationship between how well a business does and how much they spend on IT. Pretty soon, everyone is going to wake up to the notion that IT is just a cost center that doesn't provide any competitive advantage and stop wasting their money.”
Before this gentleman turns his back on you and starts reading a novel, suggest to him (politely) why he may be incorrect.

  1. Summarize the evidence and opinions both for and against seeing IT as a source of competitive advantage.