Learning objectives

Value creation
Value Creation
Perspectives on Information Systems
Management Information Systems
Chapter 1 Information Systems in Global Business Today
Although, on average, investments in information technology produce returns far above those returned by other investments, there is considerable variation across firms.
Figure 1-8
Variation in Returns on Information Technology Investment

Investing in information technology does not guarantee good returns

• Investing in information technology does not guarantee good returns
• Considerable variation in the returns a firms receive from systems investments
• Factors:
• Adopting the right business model
• Investing in & assets (organizational and management capital)

Perspectives on Information Systems
Management Information Systems
Chapter 1 Information Systems in Global Business Today

Complementary assets:

• Complementary assets:
• Assets required to derive value from a primary investment
• Firms supporting technology investments with investment in complementary assets receive superior returns
• E.g.: invest in technology and the people to make it work properly

Perspectives on Information Systems
Management Information Systems
Chapter 1 Information Systems in Global Business Today

Complementary assets include:

• Complementary assets include:
• Organizational investments, e.g.
• Appropriate business model
• Efficient business processes BP
• Managerial investments, e.g.
• Incentives for management innovation
• Teamwork and collaborative work environments
• Social investments, e.g.
• The Internet and telecommunications infrastructure
• Technology standards