Conference Presentation | 5 Nov 2005 - 8 Nov 2005

New Perspectives on the Business Value of IT

by David James Brunner, Bradley R. Staats and Marco Iansiti

Abstract

We sought to unravel the link between IT investment and firm performance by examining deployed IT functionality (ITF). First, ITF appears to be an important link in the IT spend to business value chain. Second, ITF does not seem to be a commodity and has characteristics of a strategic resource. Third, firms with extensive ITF grow faster and on the margin breadth of ITF is more valuable than depth. Lastly, we find that faster growing firms may manage IT more efficiently than slower growers.

Keywords: Perspective; Value; Performance; Investment; Management Analysis, Tools, and Techniques; Information Technology; Information Technology Industry;

Citation:

Brunner, David James, Bradley R. Staats, and Marco Iansiti. "New Perspectives on the Business Value of IT." Paper presented at the INFORMS Annual Meeting, San Francisco, CA, November 5–8, 2005.