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Extracting the business value of IT: It is usage, not just deployment that counts!

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Abstract

Business Managers devote 90% of their time and attention to IT investments and deployment that only account for 25% of the business value of IT. The residual business value of IT (75%) resides in increased usage of information and IT by managers and employees internally and with customers, partners, and suppliers externally. Seeing, measuring, and improving the information, people, and IT usage practices in a company impacts directly effective information and knowledge use and business performance. For some companies, their Information Orientation is the difference between deploying and using information, people, and IT for competitive advantage versus competitive necessity. Knowing the difference can make a big difference in company performance.

Suggested Citation

  • Marchand, Donald, 2004. "Extracting the business value of IT: It is usage, not just deployment that counts!," Journal of Financial Transformation, Capco Institute, vol. 11, pages 125-131.
    • Handle: RePEc:ris:jofitr:1375
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    Cited by:

    1. Kim, Changsu & Yang, Kyung Hoon & Kim, Jaekyung, 2008. "A strategy for third-party logistics systems: A case analysis using the blue ocean strategy," Omega, Elsevier, vol. 36(4), pages 522-534, August.

    More about this item

    Keywords

    Financial institutions; IT investments; Information Orientation;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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