This paper traces the evolution of information technology applications in the last three decades. A review of the impact of IT on Indian organizations suggests that we have failed to harness the full potential of this technology. The need for a planned approach to IT applications is discussed. Some approaches suggested in the literature, to uncover areas of potential applications by analyzing an organization internally as well as in its linkages with external agencies, are described. Some illustrations of Indian organizations, which have used IT to gain a competitive advantage, are described. Finally the role of top management vis-a-vis information technology is explored.