CHAPTER 3
The Evidence for Business Value
The chairman of a $5 billion supermarket chain was visiting a leading business school and had just delivered an inspiring address to the MBA students. The address touched on the firm’s innovative uses of information technology, including the “digital supermarket” pilot program, in which customers in remote communities may select groceries for delivery from product images of a fully stocked supermarket. After a few questions on retail profitability, target marketing, and personal time scheduling, one student asked, “How do you determine payoff of your firm’s information technology investments?” The chairman answered, “I am certain half our information technology investment doesn’t pay off—the problem is ...
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