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Information Technology and the Productivity Paradox - Assessing the Value of Investing in IT (Hardcover)
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Information Technology and the Productivity Paradox - Assessing the Value of Investing in IT (Hardcover)
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From networks to databases, email to voicemail, the amount of
capital being invested in information technology each year is
staggering. By 1996, U.S. firms were spending more than $500
billion annually on software, networks and staff. The recently
merged Bank of America and NationsBank have an initial IT budget of
4 billion dollars. As firms like this push rapidly into the
business world of the 21st century, the question has remained: how
do firms measure returns from these substantial investments in
information technology?
Henry C. Lucas, effectively answers this question by providing a
creative and reliable framework for measuring the competitive
advantages and profits gained through investments in
state-of-the-art information systems. There is value in information
technology, and it is possible to show returns, Lucas
argues--unfortunately this value just doesn't always show up
clearly on the bottom line of a ledger. In five expertly presented
sections, he spells out exactly what businesses can expect from
their information technology investments--some investments create a
measurable value, some do not, but all are important nonetheless.
Through a precise mix of frameworks and models, such as an
Investment Opportunities Matrix, and punctuated with real examples
from successful firms, this is the first book to allow executives
to see exactly how their information technology investment can be
expected to return value, thereby maximizing their advantages in an
age of global competitiveness.
Indeed, firms who manage their information systems most
efficiently are best suited to succeed in a rapidly evolving
marketplace. With so much at stake, Information Technology is
certain to be the essential guide for firms determined to compete
and flourish in the highly competitive economy of the next century.
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