Valuing IT through Virtual Process Measurement

摘要: The so called "productivity paradox" associated with information technology remains the focus of active research in systems. One explanation involves dearth useful measures to assess value IT investments. A review predominant approaches such measurement reveals a number serious weaknesses and fundamental limitations. described this paper addresses these limitations through complementary methodology termed virtual process (VPM). Through VPM, assessments are determined computer-based representations (i.e., virlually), as opposed measuring their real counterparts ongoing organizations; Lhis approach affords advantages that unattainable extant techniques. In paper, VPM is discussed considerable detail, examples from industry practice used demonstrate use utility approach. closes set conclusions some possible directions for continued research. 1. PRODUCTIVITY PARADOX expressed terms dollars, complexity, lines code (Hall 1992). Other take strateA trillion dollars have been invested technolgic view IT, discarding valuation ogy (IT) decade eighties, yet marked promise attaining competitive advantage; however, lbe improvement business productivity illusive sustainability IT-based argu(Rothschild 1993), This able, key analysis decision has cited systems (IS) literature making. Further, IS textbooks (e.g., Fertuk 1992) now lingering dilemma (Boehm 1981), represents include guidance on subjective valuation, but current academics Abdel-Hamid asystematic suffers inconsistency bias. 1993; Glazer Keen Weill According one journal editor, aspect pertains Many researchers argue methodological pluralism manner which measured, exacer(e.g., Hall 1992; Kanevsky Housel bated by lack good multiple simultaneous employed an (King Given deep rapid proliferation attempt "triangulate" underlying value. environment, need ITpaper, we too adopt multiple-methodology approach, will certainly grow time; developed date moreover, extent fail merit; strive overto capture "true" economic benefit investments, come residual ensemble managers risk misallocation capital Virtual derives more comprehensive search not new reengineering. Traditional financial techniques ROI, IRR) decades methodology, currently being actively estimate functionality cost effectively organizations, profunction point analysis, COCOMO). limitation cesses field represented our knowledgethese they intangible costs based modeling environment. environment also benefits, many inherently qualitative, very supports symbolic simulation, dynamic difficult quantify, nearly impossible reduce taken process.