Skip to main content

IT Value of Capabilities: Experiences from a Case in Business Process Outsourcing

  • Chapter
  • First Online:
Capability Management in Digital Enterprises
  • 1145 Accesses


Business value of IT has been a research interest in economics since many decades and has resulted in several approaches, such as process-oriented, perceived value, and scorecard-based approaches. The approach proposed for investigating the value of capability management is to analyze its benefits from a strategic, informational, transactional, and transformational perspective. More specifically, strategic benefits exist if an investment in IT is made to gain a competitive advantage and increase market share. Informational benefits can be assumed if improvement in the information infrastructure for control, planning, or other management tasks is achieved. Transactional benefits typically are connected to automation or at least semi-automation of tasks within an enterprise. Transformational benefits are achieved by IT-related organizational transformations, which lead to new business models and substantial changes in value creation and propositions. This chapter elaborates on the above perspectives and includes typical effects of the business value of IT observed in a selected application case as well as analyzes how to determine them.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or Ebook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
USD 49.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 64.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 89.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Similar content being viewed by others


  1. Benkenstein, M., Fellmann, M., Leyer, M., Sandkuhl, K.: The value of enterprise modelling: towards a service-centric perspective. In: 9th IFIP WG 8.1. Working Conference on The Practice of Enterprise Modeling (PoEM 2016). LNBIP, vol. 267, pp. 299–306. Springer, Heidelberg (2016)

    Google Scholar 

  2. Mooney, J., Gurbaxani, V., Kraemer, K.: A process oriented framework for assessing the business value of information technology. In: Proceedings of the 16th International Conference on Information Systems, pp. 17–27. ACM SIGMIS Database (1996)

    Google Scholar 

  3. DeLone, W., McLean, E.: Information system success: the quest for the dependent variable. Inf. Syst. Res. 3(1), 60–95 (1992)

    Article  Google Scholar 

  4. Gregor, S., Martin, M., Fernandez, W., Stern, S., Vitale, M.: The transformational dimension in the realization of business value from information technology. J. Strateg. Inf. Syst. 15(3), 249–270 (2006)

    Article  Google Scholar 

  5. Parker, M., Benson, R.: Information Economics. Prentice-Hall, Englewood Cliffs, NJ (1998)

    Google Scholar 

  6. Kaplan, R.S., Norton, D.P.: The Balanced Scorecard: Translating Strategy into Action. Harvard Business Press, Harvard (1996)

    Google Scholar 

  7. Porter, M.E.: Competitive Advantage: Creating and Sustaining Superior Performance. Simon and Schuster, New York (1985)

    Google Scholar 

  8. Koç, H.: Methods in designing and developing capabilities: a systematic mapping study. In: The Practice of Enterprise Modelling. LNBIP, vol. 235, pp. 209–222. Springer, Heidelberg (2015)

    Google Scholar 

  9. Koç, H., Kuhr, J.-C., Sandkuhl, K., Timm, F.: Capability-driven development: a novel approach to design enterprise capabilities. In: El-Sheikh, E., Zimmermann, A., Jain, L.C. (eds.) Emerging Trends in the Evolution of Service-Oriented and Enterprise Architectures. Intelligent Systems Reference Library, vol. 111, pp. 91–112. Springer International, Berlin (2016)

    Chapter  Google Scholar 

Download references

Author information

Authors and Affiliations


Corresponding author

Correspondence to Kurt Sandkuhl .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2018 Springer International Publishing AG, part of Springer Nature

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Sandkuhl, K. (2018). IT Value of Capabilities: Experiences from a Case in Business Process Outsourcing. In: Sandkuhl, K., Stirna, J. (eds) Capability Management in Digital Enterprises. Springer, Cham.

Download citation

  • DOI:

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-90423-8

  • Online ISBN: 978-3-319-90424-5

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics