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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/14456
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| Title: | MODELING AND MEASURING THE BUSINESS VALUE OF INFORMATION TECHNOLOGY |
| Authors: | Kauffman, Robert J.
Kriebel, Charles H. |
| Issue Date: | Mar-1988 |
| Publisher: | Stern School of Business, New York University |
| Series/Report no.: | IS-88-24 |
| Abstract: | Determining the 'business value' of information technology (IT) requires
managers to choose performance measures which are well-suited to
capturing the economic impacts of the application they are evaluating.
In this paper, the authors discuss a promising approach for bridging the
gap between a theory for rational decisions and management practice in
evaluating investments in IT: Data Envelopment Analysis (DEA). The
referent discipline for the discussion is production economics, and the
authors review basic concepts concerning performance measurement,
efficiency, productivity and economic contribution or value-added from
an economist's perspective. DEA's promise lies in its ability to handle
multiple input and output production environments and its management
action orientation. As an illustration of this potential, DEA is applied
to assessing the performance of an automated teller machine (ATM)
network, an IT which creates economic impacts at various organizational
levels of a commercial bank. |
| URI: | http://hdl.handle.net/2451/14456 |
| Appears in Collections: | IOMS: Information Systems Working Papers
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