Title :
A comparison of approaches to the measurement of IT value
Author :
Alpar, Paul ; Kim, Moshe
Author_Institution :
Dept. of Inf. & Decision Sci., Illinois Univ., Chicago, IL, USA
Abstract :
The measurement of information technology (IT) by calculating key ratios of IT intensity and relating them to key ratios of firm performance is compared with a more rigorous approach to cost functions based on microeconomic theory. Both procedures are applied to the same set of data from the banking industry. The results show that reasoning about IT impact based on key ratios may be misleading, especially when the figures are only calculated for a cross-section of the data
Keywords :
office automation; banking industry; cost functions; firm performance; information technology; measurement of IT value; microeconomic theory; reasoning; Area measurement; Banking; Companies; Cost function; Information processing; Information technology; Insurance; Investments; Microeconomics; Performance analysis;
Conference_Titel :
System Sciences, 1990., Proceedings of the Twenty-Third Annual Hawaii International Conference on
Conference_Location :
Kailua-Kona, HI
DOI :
10.1109/HICSS.1990.205246
