Showing papers on "Business value published in 1989"

An Evaluative Framework for Research on the Performance Effects of Information Technology Investment

Abstract: Firms today invest enormous resources in information technology with the hope of gaining significant returnswhich will impact their performance. A growing body of research into the firm performance effects of IT investmenthas emerged and is sometimes referred to as IT business value research. The problem researchers face is identifyingrobust methods to gain insight into how IT business value is created. This paper reports on the state of IT businessvalue research by reviewing thirteen empirical studies. It also proposes a new evaluative framework to identifystrengths and weaknesses in this research. The paper concludes with a series of recommendations to improve thequality of future IT business value research.

Value congruence: The interplay of individual and organizational value systems

Abstract: This paper focuses on the individual manager making difficult decisions within the context of the organization in which he or she is a member. It proposes a method for examining the interplay of individual and corporate value systems, offering a value congruence model. Hypotheses are generated concerning the varying nature of the value conflicts faced by managers. These are then evaluated based upon interview data from a cross-section of managers in two organizations. The impact of differing organizational value systems is discussed, as well as the implications of the study for research in this area.

An evaluative framework for research on the performance effects of information technology investment

Abstract: Firms today invest enormous resources in information technology with the hope of gaining significant retums which will impact their performance. A growing body of research into the firm performance effects of IT investment has emerged and is sometimes referred to as IT business value research. The problem researchers face is identifying robust methods to gain insight into how IT business value is created. This paper reports on the state of IT business value research by reviewing thirteen empirical studies. It also proposes a new evaluative framework to identify strengths and weaknesses in this research. The paper concludes with a series of recommendations to improve the quality of future IT business value research. Center for Digital Economy Research Stem School of Business Working Paper IS-89-83

Market value vs. financial accounting measures of national saving

Abstract: Although National Income and Product Account (NIPA) saving measures, and especially NIPA saving rates, are widely used in both scholarly and journalistic treatments, they are seriously defective as representations of the variables derived from economic analysis, either for measuring economic performance or as elements of the explanation for consumption behavior The cost-based value of a restricted class of assets recorded in the national income and product accounts is a version of the financial accounting for the tangible assets of a business firm Economic analysis calls instead for the current asset market value of business enterprises (and their equivalents) as the measure of wealth, and the annual change in that value as the measure of saving National Balance Sheet data on wealth at asset market value presented in this paper show that NIPA saving measures are not good proxies for market value measures The picture of recent national saving experience that emerges from market value data is quite different Various conceptual and data quality issues are discussed

A New Approach To Measuring The Business Value Of Information Technologies

Abstract: An important management question today is whether or not the anticipated benefits of Information Technology (IT) investments are being realized. In this paper, we consider this problem to be a measurement related issue, and propose a methodology for determining the economic impacts or "business value" of Information Technologies. It involves partitioning the data set based on economic performance and IT related differences, and focusing on intermediate level output variables for tracing and measuring IT contributions. In addition to answering the question above, the proposed methodology helps in deriving implications for better management of the IT function.

The Business Value Effects of Cognitive Biases in Trading Workstation Window Design

Abstract: Recent research on information technology (IT) value has focused on examining new theoreticalbases from which to construct robust valuation methods and models. This paper considers twoliteratures which previously have not been explored in this context: research on behavioraldecision making and information presentation effects. We begin by identifying a typology ofpotential cognitive biases and heuristics which may enhance or suppress IT value whenworkstations are used to provide decision support. To illustrate, we examine how these effectsmay become operative in screen-based securities and foreign exchange trading activities, wheredesigners can choose among information presentation formats which support trader decisionmaking. We adapt a recent model by Kroeck, Kirs and Fiedler (1989) to identify where and howinformation effects, heuristics and biases come into play in the trading environment. Ourinvestigation concludes that managerial recognition of the potential value tradeoffs associatedwith alternative trading workstation window designs is an important concern for fine-tuningtrading decision support systems. In this way, the "business value linkage" between tradingworkstation investments and the returns they provide can be more fully understood.

Quantifying the business value of information technology: a conceptual framework and application to electronic banking

Abstract: Information Systems Working Papers Series

On the state-of-the-art: methods for evaluating the performance effects of investments in information technology

Abstract: IT creates impacts at several levels in the firm and often indirectly contributes to firm profitability. The problem ISresearchers face is identifying robust methods that give reliable results. This paper reports on state-of-the-artmethods in IT value research, reviews eleven major empirical studies and suggests three fundamental classes ofconsiderations for conducting successful IT value research. To illustrate methodological advance, new results arepresented from two recently completed IT value studies in financial services and manufacturing. The paper concludesby suggesting untapped theory bases that have the most to offer IT value research.

Parameter Non-Stationarity in a Model to Estimate the Business Value of Information Technology

Abstract: Developing robust and refined measures to quantify strategic impacts is a major challenge facing researchers who seek to improve methods for IT investment evaluation. This paper presents a means to test for parameter "non-stationarity" in a model which quantifies the strategic contribution of IT. An iterative "jackknife" procedure is used to diagnose if different local competitive and demographic conditions present in branch banking enhance or suppress leverage on deposit market share associated with membership in an ATM network. Preliminary results suggest this approach will be useful for managers who need to evaluate similar ITs which operate in different environments.

Parameter heterogeneity in a model which estimates the business value of information technology

Abstract: Developing robust and refined measures to quantify strategic impacts is a major challenge facing researchers who seek toimprove methods for information technology (IT) investment evaluation. This paper presents a means to test for parameterheterogeneity in a model which quantifies the strategic contribution of IT. An iterative "jackknife" procedure is used todiagnose if different local competitive and demographic conditions present in branch banking enhance or suppress leverageon deposit market share associated with membership in an automated teller machine (ATM) network. The results arevalidated using correlation analysis and re-estimating partitioned data sets for a market share model developed by Banker andKauffman (1988). Overall, the results suggest this new approach will be useful for managers who need to evaluate similar ITSwhich operate in different environments.