Proposed re-conceptualization of IT business value benefits

Abstract

Purpose

Financial measures, available aplenty, of returns on investments in information technology (IT) are deemed insufficient in terms of inclusion of intangible benefits. The purpose of this paper is to re-conceptualize the IT business value (ITBV) benefits by Gregor et al. (2006) after a contemporary evaluation.

Design/methodology/approach

IT experts have been administered the instrument to provide insight into the contemporary cogitation of ITBV benefits and factor analyses are employed to re-conceptualize the ITBV benefits.

Findings

Of the four ITBV benefits, the statistical analysis suggests that Informational and Transactional benefits need to be re-conceptualized. It is affected through a systematic linking of parameters – business strategy, objectives, information systems (IS) strategy, IS role and IS-business alignment profiles in that order.

Research limitations/implications

Operational definitions of re-conceptualized ITBV benefits have been presented which may be operationalized into components.

Practical implications

The re-conceptualization provides managers with an enhanced understanding of ITBV in line with the alignment of IS with business objectives and strategy and guides managers to develop customized ITBV measures.

Originality/value

The study employs factor analyses to analyse the ITBV benefits. It proves that the changing face of IT, wherein it is looked at as a value creator, needs an all-encompassing and contemporary envisioning of ITBV benefits. It also suggests an advanced typology based on further insightful IS literature.

Citation

Daulatkar, S. and Sangle, P.S. (2016), "Proposed re-conceptualization of IT business value benefits", Business Process Management Journal, Vol. 22 No. 3, pp. 522-545. https://doi.org/10.1108/BPMJ-11-2014-0113