Valuing information technology infrastructures: a growth options approach
Information Technology and Management
Understanding the Impact of Collaboration Software on Product Design and Development
Information Systems Research
Journal of Management Information Systems
Systems Design, Process Performance, and Economic Outcomes in International Banking
Journal of Management Information Systems
Information Processing Design Choices, Strategy, and Risk Management Performance
Journal of Management Information Systems
Communications of the ACM
Realizing business value of agile IT applications: antecedents in the supply chain networks
Information Technology and Management
Optimal strategies of IT consulting firms: the impact of license fee and open source
Proceedings of the 10th international conference on Electronic commerce
Overview and Framework for Data and Information Quality Research
Journal of Data and Information Quality (JDIQ)
What determines IT spending priorities?
Communications of the ACM - A Blind Person's Interaction with Technology
Determining Optimal CRM Implementation Strategies
Information Systems Research
Empirical research on information technology value
International Journal of Networking and Virtual Organisations
Improving financial data quality using ontologies
Decision Support Systems
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We use an economic model to formalize the complex relationships among IT investments, intermediate performance measures (e.g., product quality and output levels), and economic performance (e.g., productivity, profits, and consumer surplus). We demonstrate that a profit-maximizing monopolist invests in IT (modeled as changes in parametric characteristics of the firm) to design a better-quality product and charge a higher price. While this profit-maximizing adjustment generates more consumer surplus, it also increases production costs in a way that adversely affects productivity. In contrast, a simple model extension shows that when a firm is unwilling or unable to improve product quality, then IT investments result in suboptimal improvements in profits, an increase in consumer surplus, and an increase in productivity. Together, these models highlight the way in which product quality moderates the relationship between IT investments and economic performance. We also demonstrate that these relationships are robust to the socially optimal case in which a social planner chooses price and quality to maximize social welfare. In addition, we demonstrate that the results of the monopoly model hold when considering the design and development of products offered free of charge (e.g., free online content), but that provide indirect benefits to the firm (e.g., more advertising revenues).