A process oriented framework for assessing the business value of information technology

Abstract

In the current competitive environment, the need for better management of all organizational resources, and specifically IT, requires comprehensive assessment of their contribution to firm performance. However, there is little empirical evidence that IT is capable of creating value, nor has a comprehensive framework of business value emerged. Many of the available studies of IT productivity and business value were conducted using firm level output measures of value. The focus on firm level output variables, while important, provides only limited understanding of how value is created using IT. This paper develops a conceptual framework of the business value outcomes of IT by synthesizing the extant literature on IT business value and IT supported organization and process design. The framework provides a basis for process oriented studies of IT business value, and enhances our understanding of the links between information technology and firm performance.