Where to Invest in Information Systems: A CRM Case Study

This paper proposes a framework for examining the use of the knowledge value-added (KVA) methodology to measure the value added by information systems (IS) to business processes. This approach provided a practical way to examine how estimates of the return on knowledge (ROK) of the use of IS supported the core processes before and after deployment within a large telecommunications company (SBC Telecom). This approach offers a means for estimating the return on investments in IS. The paper begins by reviewing the context of IS investment decision making at SBC Telecom. The method for deriving estimates using KVA is reviewed in the SBC Telecom case. The problems in using this new methodology in the high pressure, time critical context of the case are reviewed along with the ways the research team overcame the initial reluctance to use KVA.