Value Implications of Investments in Information Technology

Anderson, Mark C.; Banker, Rajiv D.; Ravindran, Sury

doi:10.1287/mnsc.1060.0542

Cited by 144 publications

(86 citation statements)

References 42 publications

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“…Value is rarely calculated in quantitative measurements because it is considered a complex, dynamic and context-dependent variable that is subject to the type of company and researcher carrying out the estimate (Anderson, et al 2006). …”

Section: Fig 2 -The Enterprise Governance Of Itmentioning

confidence: 99%

Governance and Assessment Insights in Information Technology: the Val IT Model

et al. 2015

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The purpose of this paper is the investigation of the relationship between Information Technology and value creation. In doing so, the paper presents a conceptual framework based on the Val IT model. This framework can assist companies in the selection, implementation and optimization of IT investments to create long-term value. The paper is based on a qualitative approach with the inclusion of a single-method approach. Research is developed according to the study of national and international literature. Following an initial analysis of existing literature on the evaluation of company investments, research has been conducted through the Val IT method to assess these intangible assets. The sources of research are secondary in nature (documents, reports, newspaper articles, papers and scientific books). This methodology emphasises the connection between the modern services created in the knowledge economy and the application of new technologies, especially in the field of Information Technology. Val IT is a governance framework for creating business value from IT investments. It allows companies to increase the possibility of selecting investments with a high potential of value creation, as well as with a greater possibility of success in executing, creating, strengthening and using these services.Keywords: Information Technology (IT), IT governance, IT management, complex systems, Vali IT. 1 GOVERNANCE AND ASSESSMENT INSIGHTS IN INFORMATION TECHNOLOGY: THE VAL IT MODEL AbstractThe purpose of this paper is the investigation of the relationship between Information Technology and value creation. In doing so, the paper presents a conceptual framework based on the Val IT model. This framework can assist companies in the selection, implementation and optimization of IT investments to create long-term value. The paper is based on a qualitative approach with the inclusion of a single-method approach. Research is developed according to the study of national and international literature. Following an initial analysis of existing literature on the evaluation of company investments, research has been conducted through the Val IT method to assess these intangible assets. The sources of research are secondary in nature (documents, reports, newspaper articles, papers and scientific books). This methodology emphasises the connection between the modern services created in the knowledge economy and the application of new technologies, especially in the field of Information Technology. Val IT is a governance framework for creating business value from IT investments. It allows companies to increase the possibility of selecting investments with a high potential of value creation, as well as with a greater possibility of success in executing, creating, strengthening and using these services.

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Section: Fig 2 -The Enterprise Governance Of Itmentioning

confidence: 99%

Governance and Assessment Insights in Information Technology: the Val IT Model

et al. 2015

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“…The impact of IT resources on operational capability can be explained mainly by the strategic roles that IT resources play in business organizations-the standardization [21] and automation. The most essential and significant role of IT is to automate business processes that traditionally have been driven mostly by paper handling and therefore tended to be laborious and error-prone [5]. Hence, given the large number of transactions a government agency usually handles, the value impact of automating business processes can be enormous.…”

Section: The Analytical Framework Of It's Effects On Public Service Pmentioning

confidence: 99%

“…It has been one of the primary research focuses on information systems literature for the last couple of decades to find whether information technology investments can lead an organization to generate greater productivity and achieve sustainable competitive advantages [2]. A large number of empirical evidences have shown that information technology is positively associated with organizational productivity, profitability, and market value [3,4,5]. A subsequent question raised is how investments in IT lead to greater organizational productivity in public service.…”

Section: Introductionmentioning

confidence: 99%

Untitled

Yang¹

2015

Proceedings of the 2015 International Conference on Engineering Management, Engineering Education and Information Technology

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Abstract. Given the increasing important of IT in the public services delivery and the massive amount of spending in IT in governments, it is imperative to understand how to evaluate the contributions of IT in governments for better delivery of services and enhanced interactions with citizens and business. From the perspective of Business Process Management and public value management, this paper takes a process level approach to productivity and IT effects of public service. This paper argues that IT, does not directly lead to greater service productivity, but they do so through intermediate organizational and interorganizational capabilities. The case study of home service illustrates IT's effects on the four key of organizational and interorganizational capabilities that are paramount to public service productivity, which includes operational capability, communication capability, partnering capability and innovative capability. IT resources in public organizations enable public managers to pursue greater service productivity by cultivating these four capabilities.

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“…In addition, McAfee and Brynjolfsson (2008, p. 103) found out in an extensive study that "IT appears to be much more strongly correlated with the changes in the competitive dynamics than R&D does." The controversial discussion about the actual contribution of IT to business performance (Anderson et al 2006;Lim et al 2004) is also reflected in the results of numerous studies on the implementation of CRM systems. Whereas on the one hand the failures of CRM projects have mainly been attributed to technological aspects (e.g.…”

Section: Mutual Alignment Of Marketing and Itmentioning

confidence: 99%

Value-Based CRM

Gneiser

2010

Bus Inf Syst Eng

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Customer relationships represent a firm's most valuable assets. Within value-based management it is therefore crucial that customer relationships should be treated as assets or investments that need to be actively managed to maximize corporate value. However, (mono-)disciplinary approaches often do not explore the true economic potential of CRM. Therefore, this paper first presents the state of the art of CRM in academia and practice in general. Furthermore, specific challenges of a value-based CRM for the interaction between marketing, financial management, and IT are analyzed in detail. In addition to a mutual alignment of marketing and IT, the development of financial performance measures is crucial. Based on these measures and on an adequate IT support, the contribution of CRM to the corporate value can be measured and controlled.

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Value Implications of Investments in Information Technology

Cited by 144 publications

References 42 publications

Governance and Assessment Insights in Information Technology: the Val IT Model

Governance and Assessment Insights in Information Technology: the Val IT Model

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Value-Based CRM

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