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|Title: ||INVESTMENT IN INFORMATION TECHNOLOGY AND ORGANIZATIONAL PERFORMANCE|
|Authors: ||Weill, Peter|
Olson, Margrethe H.
|Keywords: ||Information technology investment|
|Issue Date: ||Mar-1988|
|Publisher: ||Stern School of Business, New York University|
|Series/Report no.: ||IS-88-22|
|Abstract: ||Information technology (IT) is essential to many businesses, but there are few guidelines for determining
the adequate level of investment in IT. The purpose of this paper is to further understanding of the
mechanism of IT investment. Previous studies on IT investment are briefly presented. The authors
performed six-mini case studies of large companies in five different industries; these studies addressed the
questions of how firms define IT and how they manage their investment in IT. Our goal was to formulate
a model of the relationship between IT investment and organizational performance. We present the
model and pose questions for investigating this important relationship more closely.
Findings of interest relate to the definition of IT, the importance of political considerations, the concept
of an industry-based threshold investment, the conversion effectiveness of IT investment, and the concept
of productive capacity. The most important finding relates to the separation of different types of IT
investment and their logical matching to particular performance measures.|
|Appears in Collections:||IOMS: Information Systems Working Papers|
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