Information technology and the productivity paradox : assessing the value of the investment in IT / Henry C. Lucas, Jr.

Format:

Book

Author/Creator:

Lucas, Henry C.

Language:

English

Subjects (All):

Information technology--Finance.

Information technology.

Capital investments.

Rate of return.

Physical Description:

ix, 225 pages : illustrations ; 24 cm

Place of Publication:

New York : Oxford University Press, 1999.

Summary:

From networks to databases and from e-mail to voicemail, the amount of capital being invested in information technology (IT) each year is staggering. By 1996, U.S. firms were spending more than $500 billion annually on IT. In 1997, prior to its merger with Bank of America, Nations Bank reported a nearly $2 billion budget for IT. 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 IT?

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 IT, 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 IT 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 IT investment can be expected to return value, thereby maximizing their advantages in an age of global competitiveness.

Contents:

Chapter 1 Is it Reasonable to Expect a Return from Investments in Information Technology? 3

Chapter 2 A Garbage Can Model and the IT Investment/Value Equations 25

Part II IT Investments Among and Within Firms 43

Chapter 3 The Evidence for a Return Across Groups of Companies 45

Chapter 4 IT Investments with Direct Returns 59

Part III Indirect and Less Obvious Returns from IT Investment 79

Chapter 5 The Indirect Benefits from IT Investments 81

Chapter 6 Investing in the Infrastructure 95

Chapter 7 When IT Becomes a Part of Strategy 109

Chapter 8 Investing in IT to Enable Change 125

Part IV Increasing the Chances for Successful Investment 149

Chapter 9 Perspectives on Conversion Effectiveness 151

Chapter 10 Implications for the IT Investment Decision 161

Part V Some Implications 189

Chapter 11 Implications for Managing Information Technology 191

Chapter 12 Where IT Value is Found 203.

Notes:

Includes bibliographical references (pages 217-221) and index.

ISBN:

0195121597

OCLC:

38993081