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Thirst for Business Value of Information Technology

Thirst for Business Value of Information Technology

Govindan Marthandan, Tang Chun Meng
Copyright: © 2012 |Pages: 15
ISBN13: 9781466617520|ISBN10: 1466617527|EISBN13: 9781466617537
DOI: 10.4018/978-1-4666-1752-0.ch003
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MLA

Marthandan, Govindan, and Tang Chun Meng. "Thirst for Business Value of Information Technology." Knowledge and Technology Adoption, Diffusion, and Transfer: International Perspectives, edited by Ali Hussein Saleh Zolait, IGI Global, 2012, pp. 29-43. https://doi.org/10.4018/978-1-4666-1752-0.ch003

APA

Marthandan, G. & Meng, T. C. (2012). Thirst for Business Value of Information Technology. In A. Zolait (Ed.), Knowledge and Technology Adoption, Diffusion, and Transfer: International Perspectives (pp. 29-43). IGI Global. https://doi.org/10.4018/978-1-4666-1752-0.ch003

Chicago

Marthandan, Govindan, and Tang Chun Meng. "Thirst for Business Value of Information Technology." In Knowledge and Technology Adoption, Diffusion, and Transfer: International Perspectives, edited by Ali Hussein Saleh Zolait, 29-43. Hershey, PA: IGI Global, 2012. https://doi.org/10.4018/978-1-4666-1752-0.ch003

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Abstract

For years information technology (IT) has helped companies improve organizational efficiency and effectiveness. Today’s IT plays a more strategic role in building capabilities for sustaining and creating competitive advantages. The increasing importance of IT has led many organizations to integrate it into their daily operations. To justify the ever-increasing spending on IT, organizations have been searching for evaluation methods to prove the business value of IT. However, this is a challenging undertaking, as there are contradictory answers to questions on whether it is worthwhile to pay substantial sums for IT. To gain insight into the reasons behind the contradictory answers, this paper first reviews conflicting research results of past studies on IT business value. It then explains the term IT productivity paradox. Last, it provides five reasons why IT business value is not fully reflected in the way business managers expect it to be.

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