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25/08/2022

In our examination of the relationship between IT and some form of value, we have also accepted the complementarity argument. IT, as simply hardware and software tools, does not create value in isolation, but must be a part of a business value creating process with “other” IS and organizational factors operating in a synergistic manner (Melville et al., 2004; Wade and Hulland, 2004). These factors could be tied to the IT-based system that includes IT people and management, routines, and policies or the organizational system including non-IT people and management, business processes, knowledge assets, relationship assets, culture, structure, and policies.

unless they relate to or represent firm-level impacts.  Further, this essay will not include IT value research with broa...
24/08/2022

unless they relate to or represent firm-level impacts. Further, this essay will not include IT value research with broader societal implications such as how eGovernment adds value to a nation’s citizens. We acknowledge that all of these topics are important and that they are being dealt with by several disciplines.
Thus, in order to qualify for this stream, IT value research will satisfy at least the following two conditions: There must be an:

What is IT value research?  We propose that IT value research represents an important stream of work that deals with bus...
24/08/2022

What is IT value research? We propose that IT value research represents an important stream of work that deals with business value. It deals with economic impacts of IT and its manifestations, and as such, the boundary conditions for our essay are restricted to examination of IT value at the level of the firm or network of firms. We do not include the economy or individual levels of IT investment,

Before we do this, however, it is important to set the boundary conditions for IT value research.Failure to do so effect...
23/08/2022

Before we do this, however, it is important to set the boundary conditions for IT value research.
Failure to do so effectively would lead to the criticism that such research could include almost all IS work – since eventually all research purportedly deals with the central tenet of value through IT deployment and/or management. We argue that IT value research is an important slice of this work that can clearly be identified.

The aim of this essay is not to consolidate the substantial research of IT and organizational performance, or even chall...
23/08/2022

The aim of this essay is not to consolidate the substantial research of IT and organizational performance, or even challenge the credibility of findings. Our colleagues have done that quite effectively (e.g., Melville, Kraemer and Gurbaxani, 2004). Instead, we briefly summarize what we know and the trajectory of the research stream – and argue for injecting a discontinuity1 – to encourage research progress in promising directions. We hope to set an agenda that expands current research in order to reflect prevailing trends and yield more fruitful outcomes in this important arena.

Agarwal and Lucas (2005) suggest that demonstrating the value of investing in IT is fundamental to the contribution of t...
22/08/2022

Agarwal and Lucas (2005) suggest that demonstrating the value of investing in IT is fundamental to the contribution of the IS discipline. Therefore, the recent proliferation of work that deals directly with the value issue is a welcome development. A charter on demonstrating not only whether IT creates value, but how, when and why it does is a useful one. However, we do not believe that, even after extrapolating our current research schema, we are doing enough. We contend that IT is creating critical changes in the way business is organized and conducted. Investment decisions are often made beyond the purview of a single firm, and the value implications can extend to networks. IT is creating a plethora of information that needs to be harnessed in order to create or enhance value.
And, IT investments are not monolithic; they are linked to one another in ways that need to be understood as a part of the value dictum. These changes, among others, suggest to us that studies on IT and value need to expand their scope and move in more productive directions in order to keep up with the times.

Recent years have seen a proliferation of research articles on the relationship between information technology (IT) and ...
22/08/2022

Recent years have seen a proliferation of research articles on the relationship between information technology (IT) and organizational performance. This stream can be described as IT valuation research, as it ascribes value to IT. Several salient works have made the case that IT valuation is a complex issue involving social action that can extend over a period of time (Farbey, Land and Targett, 1993) and hence should be studied in a more comprehensive fashion (House, 1980). We contend that evaluation research should have a centrality in our field, as it is germane to the existential debate on the field’s core, especially given our sensitivity to IT value issues. Unfortunately, there have been some dissenting voices on the IT value question. “The Sinking CIO” read a headline on the cover of InformationWeek, a trade magazine. Citing the diminishing role of IT leaders, it went on to argue that IT failure to deliver innovation was to blame (Martin, 2007). Similarly, Nicholas Carr’s (2003) provocative discourse entitled “IT doesn’t matter” ruffled a few feathers. Regardless of the efficacy or scholarship of his arguments, the essay, the attention it drew, and its effect on praxis were disturbing to the IS research community, since it implied our reduced importance. Its innate logic implies to us that if IT is not valuable, then we are engaging in research on something that is not valuable, and
hence we are not valuable!

Most IT value research is ex post in nature.  It deals with the outcome of past IT investments through post hoc analysis...
21/08/2022

Most IT value research is ex post in nature. It deals with the outcome of past IT investments through post hoc analysis. Often, this work attempts to derive ex ante prescriptions regarding how IT value can be derived. There are, however, some ex ante general purpose tools that attempt to predict the outcome of IT investments, such as the Balanced Score Card (Kaplan and Norton, 1996). The main goal of all IT value research, regardless of the ex post or ex ante nature (or even research that involves the simultaneous study of the phenomenon), is to help managers use the practical findings to improve upon the value they derive from IT. Therefore, any research that satisfies the conditions above would qualify. 4

Regarding condition (2), we argue that any research involving long causal chains that does not deal with economic value ...
21/08/2022

Regarding condition (2), we argue that any research involving long causal chains that does not deal with economic value directly (e.g., top management support and quality of worklife) will classify as IT value research only if the chain leads to a variable dealing with economic impact (e.g., top management support → quality of IS worklife → profitability). Studies that focus on the early part of the chain only (e.g., system development methods → quality of systems) will not satisfy condition (2) since they are not linked to an ultimate economic value variable.3 In short, we will consider variables that have obvious and direct economic impact in the marketplace. For instance, a study dealing with the impact of web design on perceived service quality (PSQ) in an e-commerce context would not qualify as IT value research because the PSQ to economic value link cannot be assumed and could be subject to hypotheses testing. But a study that examines web design and Economic Value Added (EVA), abnormal stock returns or consumer surplus deals directly with economic value and therefore is considered within the scope of IT value research.

The expansive model might also focus on the increasingly connected business context, recognizing that RFID value might r...
20/08/2022

The expansive model might also focus on the increasingly connected business context, recognizing that RFID value might require co-creation by bridging capabilities among partners and equitable sharing of disparate resources. For instance, processes that afford greater efficiency in supply chains through RFID will create further value by reducing the “bull-whip effect” because information sharing between partners may lead to smaller lot sizes and more timely delivery to the shop floor (Veeramani, 2005). Also, once embedded, RFID technology is the front door entry to a significant dataset which, when combined with managerial experience, can uncover waste, unnecessary transportation, and premature product decay due to improper storage. It could also be the source of new value-ad

20/08/2022

n addition to those described above, rich research opportunities for IT value research emerge at the intersections of our four research themes. Researchers can examine possibilities for research such as those cited in Table 2. For instance, the intersection of IT-embeddedness with the other three themes yield issues of inter-firm digital capabilities and how IT facilitates synergistic value through seamless structures and processes. Such relationships can generate data that each party can share and further expand the value including non-economic relationships such as resilience and ability to absorb market shocks by forecasting and modeling market conditions. Similarly, the intersection of IT-embeddedness with the information mindset and value expansion offers novel areas for research.
IT-embeddedness provides an infrastructure for ongoing data gathering, while the information mindset enables the exploitation of that information, thus providing rich opportunities to build sense- and-respond capabilities and expand value from innovative business processes and new information- based products.

More expansive research would add deeper insight into RFID and value realization.  By focusing on business capabilities ...
20/08/2022

More expansive research would add deeper insight into RFID and value realization. By focusing on business capabilities and IT embeddedness, there is a direct recognition that value is realized by increasing the convergence of these capabilities. So, research questions include: when does RFID integrated with other systems (information or manufacturing) attain critical mass at which it enables desired business capabilities? What new business capabilities can be created to exploit RFID, IT infrastructure, and processes across firms? How do business capabilities tie into RFID capabilities and configurations? These questions, while not outside the scope of the traditional study of IT value, were obscured by the emphasis on IT as the driver of business capabilities.

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