Quantifying the Business Value of Information Technology: an Illustration of the 'business Value Linkage' Framework
Year: 1991
Type: preprint
Abstract: Senior management's ability to gauge the business value of investments in information technology (IT) has been seriously hampered by a lack of analytic tools to conduct sound performance assessment. In this paper, we present a conceptual framework called a "business value linkage" that is used to represent the processes by which the direct outputs of an IT are transformed within the firm and its operating environment into enhanced revenues, reduced costs and new strategic opportunities to increase market share. Utilizing appropriate modeling and econometric methods, we illustrate our approach by analyzing several hard-to-measure aspects of the business value of automated teller machines (ATMs) in retail electronic banking. The results show that the hardest to measure impacts in some cases can have the greatest business value.
Source: SSRN Electronic Journal
Authors: Rajiv D. Banker, Robert J. Kauffman
Institutions: Temple University, Singapore Management University
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1573309303