Encyclopedia of Operations Research and Management Science

2001 Edition
| Editors: Saul I. Gass, Carl M. Harris

Information technology benefits

  • Douglas A. Samuelson
Reference work entry
DOI: https://doi.org/10.1007/1-4020-0611-X_461

Many companies and other organizations have adopted new information technology in the past decade, expending considerable effort and resources to do so. Understandably, their managers wish to evaluate whether the organization's benefits from these new technologies exceeded the cost of acquisition and adoption. There is a large and growing literature on this subject, but methods to evaluate utility and appropriateness of information technology have not kept pace with the technological advances. Good methods of evaluation do exist, but they are not prominent in the literature. Using such methods and developing new ones represent an important challenge and opportunity for OR/MS analysts.

Much of the published work on the subject, especially in business journals, has focused on examining whether firms' profits, typically reported quarterly, rose substantially in a fairly short time after adoption of new information technology. Usually they did not, and various authors have expended...

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References

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    Brynjolfsson, E. and Hitt, L.M. (1998). “Beyond the Productivity Paradox: Computers are the Catalyst for Bigger Changes,” Communications Association for Computing Machinery 41(8), 49–55.Google Scholar
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    Brynjolfsson, E. and Yang, S. (1997). “The Intangible Costs and Benefits of Computer Investments: Evidence from the Financial Markets,” Proceedings International Conference on Information Systems, Atlanta, Georgia, December [more current version available at author's Web site, http://ccs.mit.edu/erik]. Google Scholar
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    Brynjolfsson, E. and Yang, S. (1996). “Information Technology and Productivity: A Review of the Literature,” Advances in Computers 43, 179–214.Google Scholar
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    Shapiro, C. and Varian, H. (1999). Information Rules: A Strategic Guide to the Network Economy, Harvard Business School Press., Boston.Google Scholar
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    Strassmann, P. (1990). The Business Value of Computers, Information Economics Press, New Canaan, Connecticut [see author's Web site, http://www.strassmann.com/, for more recent material].Google Scholar

Copyright information

© Kluwer Academic Publishers 2001

Authors and Affiliations

  • Douglas A. Samuelson
    • 1
  1. 1.Infologix, Inc.AnnandaleUSA