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The widespread dissemination of information technology seems a convincing indication of its economic value to its users. Yet quantitative measures of benefit are not readily available and are difficult to determine. Our research considers the impact of information technology at the level of the firm rather than the specific project, function or work unit level. The methodological approach is derived from current economic theory of production. This approach attempts to account for overall IT costs and measure the impact on the cost of production of the aggregate firm output. This paper reports on some preliminary results from the data collected in ease studies of two of the five large Canadian Chartered Banks."Supported by the NSERC of Canada.-20-