Measuring Gains in Operational Efficiency from Information Technology: A Study of the Positran Deployment at Hardee'S Inc.

29 Pages Posted: 31 Oct 2008

See all articles by Rajiv D. Banker

Rajiv D. Banker

Temple University - Department of Accounting

Robert J. Kauffman

Singapore Management University; Singapore Management University - School of Information Systems

Richard R Morey

affiliation not provided to SSRN

Date Written: May 1991

Abstract

This paper presents a new approach to measuring the input productivitygains from information technology (IT) in complex managerial environments. Theapproach is illustrated in the context of a study of a pilot deployment at Hardee's Inc.of a new cash register point-of-safe and order-coordination technology called “Positran."The method employs data envelopment analysis (DEA) and nonparametricproduction frontier hypothesis testing to determine whether the performance ofrestaurants that have deployed Positran is better, on average, than for those that havenot. The design of the study is of special interest because it approximates a controlledexperiment. Our results show that Positran helped to reduce input materials costs, sincerestaurants that deployed the technology were less likely to be inefficient It is furtherpossible to characterize the class of restaurants for which the relationship holds.Operational efficiency measures such as the ones we have developed provide managerswith the opportunity to implement deployment strategies for new ITs in order tomaximize value.

Keywords: measuring value of information systems, operational efficieny, productivity gains due to information systems

Suggested Citation

Banker, Rajiv D. and Kauffman, Robert J. and Morey, Richard R, Measuring Gains in Operational Efficiency from Information Technology: A Study of the Positran Deployment at Hardee'S Inc. (May 1991). Information Systems Working Papers Series, Vol. , pp. -, 1991. Available at SSRN: https://ssrn.com/abstract=1289033

Rajiv D. Banker (Contact Author)

Temple University - Department of Accounting ( email )

Philadelphia, PA 19122
United States

Robert J. Kauffman

Singapore Management University ( email )

Li Ka Shing Library
70 Stamford Road
Singapore 178901, 178899
Singapore
65-6828-929 (Phone)

Singapore Management University - School of Information Systems ( email )

80 Stamford Road
Singapore, 178902
Singapore

Richard R Morey

affiliation not provided to SSRN

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