NDLI: IT: what's it good for?

Content Provider	IEEE Xplore Digital Library
Author	Nelson, H.J. Nelson, K.M.
Copyright Year	2003
Description	Author affiliation: Ohio State Univ., Columbus, OH, USA (Nelson, H.J.; Nelson, K.M.)
Abstract	Demonstrating the business value of information technology (IT) strategies is a major concern for most organizations. Previous research in this area has yielded mixed results, further confounding the issue. Much of the previous literature has focused on the return on investment in hardware and software as the definition of business value. We take a different approach to the IT business value problem by examining whether organizations that deploy IT with differing strategies enjoy better business value efficiencies. This paper describes an eight-year longitudinal study of a homogeneous set of credit unions to determine if different IT deployment strategies (interactive Web site, informational Web site, or no Web site) result in greater credit union efficiency. Data envelopment analysis by Cooper et al. (2000) and Charnes et al. (1978) was used to calculate efficiency scores. Our results indicate that credit unions who use the strategy of interactive Web sites have greater overall and asset efficiency than credit unions with informational or no Web sites. Credit unions with informational Web sites have greater asset efficiency than those without Web sites, but do not show a difference in overall efficiency. Our analysis shows no statistical difference in personnel and operational cost efficiencies between the three different groups of credit unions. This result contradicts conventional wisdom that a business benefit of IT is cost reduction.
File Size	397729
File Format	PDF
ISBN	0769518745
DOI	10.1109/HICSS.2003.1174632
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2003-01-06
Publisher Place	USA
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Investments Data envelopment analysis Hardware Information technology Productivity Internet Personnel Cost accounting Logic Automation
Content Type	Text
Resource Type	Article

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