36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the (2003)
Big Island, Hawaii
Jan. 6, 2003 to Jan. 9, 2003
H. James Nelson , Ohio State University
Kay M. Nelson , Ohio State University
Demonstrating the business value of information technology (IT) strategies is a major concern for most organizations. Previous research in this area has yielded mixed results, further confounding the issue. Much of the previous literature has focused on the return on investment in hardware and software as the definition of business value. We take a different approach to the IT business value problem by examining whether organizations that deploy IT with differing strategies enjoy better business value efficiencies. This paper describes an eight-year longitudinal study of a homogeneous set of credit unions to determine if different IT deployment strategies (interactive web site, informational web site, or no web site) result in greater credit union efficiency. Data Envelopment Analysis [1, 2] was used to calculate efficiency scores. Our results indicate that credit unions who use the strategy of interactive web sites have greater overall and asset efficiency than credit unions with informational or no web sites. Credit unions with informational web sites have greater asset efficiency than those without web sites, but do not show a difference in overall efficiency. Our analysis shows no statistical difference in personnel and operational cost efficiencies between the three different groups of credit unions. This result contradicts conventional wisdom that a business benefit of IT is cost reduction.
H. J. Nelson and K. M. Nelson, "IT: What?s It Good For?," 36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the(HICSS), Big Island, Hawaii, 2003, pp. 246a.