IT Payoff, The: Measuring the Business Value of Information Technology Investments

Table of contents

1. Copyright
2. Foreword
3. 1. Introduction to Information Technology Payoff
   1. IT Payoff: A Dialog
   2. Reasons for IT Payoff Measurement
      1. Competing Investments
      2. Duration of Payoff
      3. Overall Economic Picture
   3. How Has Investment in IT Been Measured Thus Far?
      1. Profitability
      2. Productivity
      3. Customer Value
   4. IT Payoff: A Case for Continued Investment?
4. 2. The IT Pay off Paradox
   1. Factors Contributing to the IT Productivity Paradox
      1. Anecdotal Evidence
      2. A Snapshot View
      3. Isolating the Effect of IT
      4. Levels of Analysis
      5. Aggregated Analysis
      6. Complementary Factors
   2. Does the Paradox Still Exist?
   3. Moving Beyond the Paradox?
5. 3. The Strategic Role of Technologies
   1. Why is Strategy in IT Planning Important?
   2. What is Strategy?
   3. Developing a Strategy
   4. Looking Outward
   5. Looking Inward
   6. What To Look For
   7. Connecting the Dots
6. 4. Failure Analyses
   1. Timing is Everything
   2. Unrealistic Expectations
   3. Management Support
   4. Explicit Payoff Metrics
   5. Infrastructure
   6. Are You Ready for Integration?
   7. Training
7. 5. A ProcessPerspective
   1. Let’s Talk Theory
   2. Advantages of Variance and Process Approaches
   3. Process Approach: A Discussion
   4. Process Approach: An Application
   5. Combining Process and Variance Approaches
   6. Summary
8. 6. Technology Payoff Metrics—Balanced Multiple Objectives
   1. Immediate versus Lagged Metrics
   2. Productivity, Profitability, and Customer Value
   3. A Balanced and Inclusive Approach
      1. Customer Perspective
      2. Internal Business Perspective
      3. Innovation and Learning Perspective
      4. Financial Perspective
      5. Final Thoughts on the Balanced Scorecard
   4. Recommendations
9. 7. The Technology Curve
   1. Is There Evidence for the Existence of Technology Curves?
   2. Drawing an S-Curve (adapted from Foster )
   3. Implications
      1. Payoff Depends on the Position on the Technology Curve
      2. Pay Attention to S-Curves of New Technologies
      3. Become Comfortable with Rendering Your Product Obsolete
      4. Recognize Competitors in Related Fields
      5. Reduce Market Acceptance Time
   4. Technology Trend Curves
   5. Disruptive Technologies
   6. Technologies of the Future
10. 8. Technology Justification Models
    1. The Real Options Approach
    2. Economic Value Added
    3. Statistical Approaches
11. 9. Implementing IT Payoff Initiatives: A Framework
    1. Phase I: Exploration
    2. Phase II: Involvement
    3. Phase III: Analysis
    4. Phase IV: Communication
12. 10. Electronic Commerce: Challenges and Opportunities in Assessing IT Payoff
    1. Data, Information, and Knowledge
    2. E-Loyalty: Your Payoff in Online Commerce
       1. A Model for E-Loyalty
    3. E-commerce Payoff
    4. Looking to the Future: Challenges in IT Payoff Assessment
13. 11. Assessing IT Payoff: A Case Study
    1. Phase I: Exploration
       1. Step 1: Identifying the Investment Stage
       2. Step 2: Match Approach and Techniques
    2. Phase II: Involvement
       1. Step 3: Identify Tangible and Intangible Metrics
       2. Steps 4 and 5: Make Business Case for IT Payoff Measurement and Ensure Customer Involvement
    3. Phase III: Analysis
       1. Step 6: Conduct Analysis
       2. Step 7: Interpret Data for Constituents
    4. Phase IV: Communication
       1. Step 8: Provide Feedback and Actionable Steps
       2. Step 9: Institutionalize Bias for IT Payoff Measurement
    5. An Update
    6. Conclusion
14. 12. Succeeding at IT Payoff Measurement: An Action Plan
    1. Recap
    2. An Action Plan
    3. How to Implement a Measurement System
       1. Securing Organizational and Management Commitment
       2. Building Data Partnerships with Constituencies Inside and Outside the Organization
       3. Gathering Data
       4. Analyzing Data
    4. Capitalizing on the Cascading Effects of IT Payoff
    5. Building an Infrastructure for Ongoing IT Payoff Analysis
    6. Integrating IT Payoff Results in Managerial and Strategic Planning and Decision Making