A process oriented framework for assessing the business value of information technology

Abstract

In the current competitive environment, the need for better management of all organizational resources, and specifically IT, requires comprehensive assessment of their contribution to firm performance. However, there is little empirical evidence that IT is capable of creating value, nor has a comprehensive framework of business value emerged. Many of the available studies of IT productivity and business value were conducted using firm level output measures of value. The focus on firm level output variables, while important, provides only limited understanding of how value is created using IT. This paper develops a conceptual framework of the business value outcomes of IT by synthesizing the extant literature on IT business value and IT supported organization and process design. The framework provides a basis for process oriented studies of IT business value, and enhances our understanding of the links between information technology and firm performance.

A Literature Review on Business Process Management, Business Process Reengineering, and Business Process Innovation

“…Business processes within the organizational context can be divided into (a) operational processes, activities involving a firm's value chain and (b) management process, which consists of information processing, control, coordination and communication governing the overall operation of a system [11].…”

“…As we see, organizations look to get better business value utilizing IT, as IT continues to penetrate and impact the operational and management process of the organizations, and the business value of IT has also increased simultaneously. This prospective is improved by redesigning the processes in organizations which often results in betterment of organizational structures, thus resulting in enhanced services and efficiency provided to the organizations [11]. Hence, organizations are continuously redefining business value by means of using IT, clearly showing that IT is acting as a tool/catalyst for BPR and BPI.…”

Patterns in Business Analysis and Enterprise Modeling: How to evaluate their value?

“…The organizational context and competitive position should be considered more in studies of business value. Mooney et al [18] provide a framework that is a basis for process oriented studies of BVIT. They propose a process view for three reasons: first to identify the value adding mechanisms of IT, second to develop an approach and a set of metrics for measuring the technology's value and third to enhance the understanding of the relationship between IT and organizations.…”

A Delphi Study of RFID Applicable Business Processes and Value Chain Activities in Retail

“…Researchers suggest that information technology (IT) creates business value along three dimensions that lead to automational, informational, and transformational effects (Mooney et al, 1996;Dedrick et al, 2003). These effects are briefly discussed below:…”

“…3. Transformational: This effect refers to the role of IT in facilitating process reengineering and redesigning organizational structures (Mooney et al, 1996).…”