Measuring Value of IT LO15868

Mike Jay (Quarterback@classic.msn.com)
Tue, 18 Nov 97 12:37:27 UT

Replying to LO15814 --

Margaret,

I ran across this and thought you might want to take a look at it. It
comes from:

Story's author: Bob Violino

Read it on the Web at: http://techweb.cmp.com/iw/637/37iucov.htm

Copyright (c) 1997 CMP Media Inc. <<Information Week -- 11-17-97, p.
PG110>>

Excerpt:

"There's a new way to think about and assess the business value of IT.
This new philosophy of return on investment-pushed by several academics
and analysts, and adopted by a cutting-edge group of IT managers-says it's
the things that are most difficult to measure that matter most of all.
"There's a need for new metrics that go beyond the traditional
industrial-age measures that focus on cost analysis and savings," says
Erik Brynjolfsson, an associate professor of IT at MIT's Sloan School of
Business, a visiting associate professor at Stanford Graduate School of
Business, and a leading proponent of the new ROI thinking. "

"These new-age ROI measures focus on things such as product quality off
the assembly line, customer satisfaction after an interaction, and faster
time to market. These factors reflect a company's real sources of value,
and they're also what customers truly care about and are willing to pay
for."

_

mike <quarterback@msn.com>

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-- 

"Mike Jay" <Quarterback@classic.msn.com>

Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>