Evaluating the impact of IT investments: use of a multi-period profit-linked productivity measurement model Online publication date: Sat, 16-Aug-2014
by Mohan Rao; Purnendu Mandal
International Journal of Business Information Systems (IJBIS), Vol. 9, No. 3, 2012
Abstract: Measuring the impact of investments in IT is still elusive. The perplexing productivity paradox phenomenon generated huge interest among IT researchers and produced numerous methods for impact measurement. But there is no robust model which can clarify clearly the business productivity and IT investment issues. In general, the measurement models have failed to show clear linkage between IT investment, employee productivity, operational costs and revenues. This paper explores further the productivity paradox, and then describes a multi-period profit-linked productivity measurement model that can demonstrate to managers the link between IT investments, productivity and profitability. For practical utility, the model is implemented in a spreadsheet application so that managers can test various policy options. The paper presents the benefits of this model and discusses possible future extensions.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Information Systems (IJBIS):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook