IT & Organizational Performance: An Integrative Model of Business Value Miniproject#2 MOIS 433 Presented by Sara Maamoun Presented to Dr. Dina Rateb

About Review  Authors:  Nigel Melville  Kenneth Kraemer  Vijay Gurbaxani  Journal:   Vol.28 No.2/ June 2004

I. Introduction

Topic Overview  IT Business Value Impacts of IT on organizational performance  Knowledge Perspectives & Computing Paradigms Pre-Internet Era –Mainframes, minicomputers –Used for storing and processing information within one organization Network Era –Electronic linkages –Within & among multiple organizations

Objectives of Review  Develop a model of IT business value based in theory and informed by existing IT business value research  Use the model to synthesize & unify what is known about IT value  Guide future research by developing propositions and putting forward a research agenda

II. IT Business Value Research: Definition

Conceptualizing Information Technology 1.Tool View: IT viewed as an engineered tool doing what its designers intended 2.Proxy View: Conceptualized by its essential characteristics, which are defined by a)Individual perception of its usefulness or value b)Its investment or capital stock denominated in financial units 3.Ensemble View: Interaction of people and technology in both the development and use of IT

Defining IT Business Value Research  IT Business Value refers to the organizational performance impacts of IT including  Productivity enhancement  Cost reduction  Competitive advantage  Inventory reduction and other measures of performance  Formulations of performance  Efficiency  Effectiveness

III. Integrative Model of IT Business Value

Theoretical Paradigms Used in IT Business Value Research  Microeconomic Theory  Industrial Organization Theory  Sociology & Socio-Political Perspectives

Chosen Theory base: Resource-Based View of the Firm  RBV & IT Business Value  Prior Models  IT impacts orgnl. performance via intermediate business processes  Other orgnl. resources such as workplace practices interact with IT, whether as mediator or moderator, in the attainment if orgnl. performance impacts.  External environment plays a role in IT business value generation  It is important to disaggregate the IT construct into meaningful subcomponents

IT Business Value Model

Model Constructs

IBM IT Value Model

IV. Literature Synthesis

Research Questions

Summary of Propositions

Sources  “IT & Organizational Performance: An Integrative Model of Business Value.” MIS Quarterly. PDF:  “The IT Value Model: Winning the Business “Battle” with the right IT “Nails””. IBM Global Services. PDF: 

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