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

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

3. I. Introduction

4. 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

5. 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

6. II. IT Business Value Research: Definition

7. 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

8. 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

9. III. Integrative Model of IT Business Value

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

11. 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

12. IT Business Value Model

13. Model Constructs

14. IBM IT Value Model

15. IV. Literature Synthesis

16. Research Questions

17. Summary of Propositions

18. Sources  “IT & Organizational Performance: An Integrative Model of Business Value.” MIS Quarterly. PDF: http://web.gsm.uci.edu/~gurbaxan/itbv.pdf http://web.gsm.uci.edu/~gurbaxan/itbv.pdf  “The IT Value Model: Winning the Business “Battle” with the right IT “Nails””. IBM Global Services. PDF:  http://www-1.ibm.com/services/us/its/pdf/g510-3887-00.pdf http://www-1.ibm.com/services/us/its/pdf/g510-3887-00.pdf

19. Thank You