IT Organizational Performance An Integrative Model of Business

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: Ø Nigel Melville Ø Kenneth Kraemer Ø Vijay Gurbaxani § Journal: Ø Ø Vol. 28 No. 2/ June 2004

I. Introduction

Topic Overview Ø IT Business Value • Impacts of IT on organizational performance Ø 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 ØDevelop a model of IT business value based in theory and informed by existing IT business value research ØUse the model to synthesize & unify what is known about IT value ØGuide 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 Ø Productivity enhancement Ø Cost reduction Ø Competitive advantage Ø Inventory reduction and other measures of performance § Formulations of performance Ø Efficiency Ø 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 Ø IT impacts orgnl. performance via intermediate business processes Ø Other orgnl. resources such as workplace practices interact with IT, whether as mediator or moderator, in the attainment if orgnl. performance impacts. Ø External environment plays a role in IT business value generation Ø 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: 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/g 510 -3887 -00. pdf

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