Information Technology and the Productivity Paradox: Assessing the Value of Investing in IT

Information Technology and the Productivity Paradox: Assessing the Value of Investing in IT

by Henry C. Lucas
     
 

ISBN-10: 0195121597

ISBN-13: 9780195121599

Pub. Date: 04/28/1999

Publisher: Oxford University Press, USA

From networks to databases, email to voicemail, the amount of capital being invested in information technology each year is staggering. By 1996, U.S. firms were spending more than $500 billion annually on software, networks and staff. The recently merged Bank of America and NationsBank have an initial IT budget of 4 billion dollars. As firms like this push rapidly

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Overview

From networks to databases, email to voicemail, the amount of capital being invested in information technology each year is staggering. By 1996, U.S. firms were spending more than $500 billion annually on software, networks and staff. The recently merged Bank of America and NationsBank have an initial IT budget of 4 billion dollars. As firms like this push rapidly into the business world of the 21st century, the question has remained: how do firms measure returns from these substantial investments in information technology?
Henry C. Lucas, effectively answers this question by providing a creative and reliable framework for measuring the competitive advantages and profits gained through investments in state-of-the-art information systems. There is value in information technology, and it is possible to show returns, Lucas argues—unfortunately this value just doesn't always show up clearly on the bottom line of a ledger. In five expertly presented sections, he spells out exactly what businesses can expect from their information technology investments—some investments create a measurable value, some do not, but all are important nonetheless. Through a precise mix of frameworks and models, such as an Investment Opportunities Matrix, and punctuated with real examples from successful firms, this is the first book to allow executives to see exactly how their information technology investment can be expected to return value, thereby maximizing their advantages in an age of global competitiveness.
Indeed, firms who manage their information systems most efficiently are best suited to succeed in a rapidly evolving marketplace. With so much at stake, Information Technology is certain to be the essential guide for firms determined to compete and flourish in the highly competitive economy of the next century.

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Product Details

ISBN-13:
9780195121599
Publisher:
Oxford University Press, USA
Publication date:
04/28/1999
Edition description:
New Edition
Pages:
240
Product dimensions:
9.20(w) x 6.10(h) x 1.10(d)

Table of Contents

Preface
Pt. IIntroduction and the Garbage Can Model1
Ch. 1Is it Reasonable to Expect a Return from Investments in Information Technology?3
Ch. 2A Garbage Can Model and the IT Investment/Value Equations25
Pt. IIIT Investments Among and Within Firms43
Ch. 3The Evidence for a Return Across Groups of Companies45
Ch. 4IT Investments with Direct Returns59
Pt. IIIIndirect and Less Obvious Returns from IT Investment79
Ch. 5The Indirect Benefits from IT Investments81
Ch. 6Investing in the Infrastructure95
Ch. 7When IT Becomes a Part of Strategy109
Ch. 8Investing in IT to Enable Change125
Pt. IVIncreasing the Chances for Successful Investment149
Ch. 9Perspectives on Conversion Effectiveness151
Ch. 10Implications for the IT Investment Decision161
Pt. VSome Implications189
Ch. 11Implications for Managing Information Technology191
Ch. 12Where IT Value is Found203
References217
Index223

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