Executives' Perceptions of the Business Value of Information Technology: A Process-Oriented Approach.

Author List: Tallon, Paul P.; Kraemer, Kenneth L.; Gurbaxani, Vijay;

Journal of Management Information Systems, 2000, Volume 16, Issue 4, Page 145-173.

Despite significant progress in evaluating the productivity payoffs from information technology (IT), the inability of traditional firm-level economic analysis to account fully for the intangible impacts of IT has led to calls for a more inclusive and comprehensive approach to measuring IT business value. In response to this call, the authors develop a process-oriented model to assess the impacts of IT on critical business activities within the value chain. Their model incorporates corporate goals for IT and management practices as key determinants of realized IT payoffs. Using survey data from 304 business executives worldwide, they found that corporate goals for IT can be classified into one of four types: unfocused, operations focus, market focus, and dual focus. Their analysis confirms that these goals are useful indicators of payoffs from IT in that executives in firms with more focused goals for IT perceive greater payoffs from IT across the value chain. In addition, the authors found that management practices such as strategic alignment and IT investment evaluation contribute to higher perceived levels of IT business value.

Keywords: Business Value; Impacts of Information Technology; Information Technology Strategy; Value Chain

Algorithm:

List of Topics

#143	0.274	value business benefits technology based economic creation related intangible cocreation assessing financial improved key economics assess question created create understanding
#229	0.237	alignment strategic business strategy performance technology value organizational orientation relationship information misalignment matched goals perspective fit firms executives argue need
#252	0.117	management practices technology information organizations organizational steering role fashion effective survey companies firms set planning focus committees executives managing committee
#148	0.116	productivity information technology data production investment output investments impact returns using labor value research results evidence spillovers industries analysis gains
#191	0.061	model models process analysis paper management support used environment decision provides based develop use using help literature mathematical presented formulation
#275	0.060	perceptions attitudes research study impacts importance perceived theory results perceptual perceive perception impact relationships basis significant positive reported common individuals