Impact of IT practices and business value of IT measurement
International Journal of Productivity and Performance Management
ISSN: 1741-0401
Article publication date: 3 September 2019
Issue publication date: 21 April 2020
Abstract
Purpose
The purpose of this paper is to measure the business value of IT (BVIT) and illustrate the relationship between IT practices and BVIT.
Design/methodology/approach
The paper uses a case study approach to collect the subject firm data over a period of one year. The data are about various IT systems used in the firm and their associated capital and operational cost components. The derived data are then compared with industry benchmarks.
Findings
The IT practices employed by the firm enable it to achieve a BVIT which is higher than the industry norm, from both strategic and operational perspectives.
Research limitations/implications
In this study, a year’s worth of data from a single firm is considered. The temporal frame of the research data limits the generalization of the results. To improve the generalizability, data from many years and across many firms may be used.
Practical implications
The paper provides insights to managers to identify the measures of BVIT. Further, managers can make necessary interventions based on IT practices to derive IT capabilities which, in turn, impact the firm’s performance.
Originality/value
The contribution of the work is manifold: illustration of the relationship between IT practices and BVIT; illustration of a methodology to evaluate firm-level BVIT; and an approach to collect IT expenses – both capital and operational level.
Keywords
Acknowledgements
The authors express their gratitude and thanks to Prof Nicky Shaw and the anonymous reviewers for their valuable comments and suggestions.
Citation
Pathak, S., Krishnaswamy, V. and Sharma, M. (2020), "Impact of IT practices and business value of IT measurement", International Journal of Productivity and Performance Management, Vol. 69 No. 4, pp. 774-793. https://doi.org/10.1108/IJPPM-08-2018-0283
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited