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Journal of International Information Management

Abstract

For the last 35 years, the business strategy of corporate America has been to equate information services (IS) spending with business growth, increased re\'enue, and overall business success. This logic was based on the premise that productivity gains can be realized through efficient and effective delivery of business transactions and decision support. Yet, after significant financial resources have been invested in IS technology, the relationship between IS investments and business outcomes is still supported largely with anecdotal evidence and productivity measurements that mainly emphasize technical benchmarks. Such productivity criteria as volume throughput, shorter response time, and decreased processing costs, while useful measurements, do not capture or assess the newer value-added services that drive business in the 1990s. In a downturned economy, financial investments at all levels are questioned and there is a need to demonstrate a payback in terms of quality management, reduced risk and the ability to respond to rapidly changing customer needs. This paper analyzes both traditional benchmarks and new methodologies of IS productivity and investment payback.

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