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Measuring the Impact of Information Technology on Value and Productivity using a Process-Based Approach: The case for RFID Technologies

23 Pages Posted: 11 Dec 2003  

Brian Subirana

University of Navarra, IESE Business School; Massachusetts Institute of Technology - Auto-ID Laboratory

Chad C. Eckes

C Squared E, LLC; Massachusetts Institute of Technology (MIT) - Sloan School of Management

George Herman

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Sanjay Sarma

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Michael Barrett

University of Cambridge - Judge Business School

Date Written: December 2003

Abstract

There has been a lot of research addressing the relationship between Information Technology (IT) investments and productivity. Most of the work has been based on firm-level metrics such as total IT investment. We present what we believe is one of the first attempts to create a systematic methodology to assess the impact of IT in business process performance metrics. Our approach builds on the MIT Process Handbook as a basis to both guide the analysis and capture the resulting knowledge for future use. We will present preliminary results on how to use such methodology to analyze the impact of a given IT technology, namely RFID (radio frequency identification devices), in performance metrics of a consumer packaged goods company. We are interested in looking at how IT may impact performance metrics such as productivity, cost and value. We believe our methodology can help CPG companies prioritize their investments. We show results on how the specialization features of the MIT Process Handbook can incorporate performance metrics to help assess such investments in RFID.

Keywords: IT investments, IT productivity, Information Technology, MIT Process Handbook

Suggested Citation

Subirana, Brian and Eckes, Chad C. and Herman, George and Sarma, Sanjay and Barrett, Michael, Measuring the Impact of Information Technology on Value and Productivity using a Process-Based Approach: The case for RFID Technologies (December 2003). MIT Sloan Working Paper No. 4450-03. Available at SSRN: https://ssrn.com/abstract=478582 or http://dx.doi.org/10.2139/ssrn.478582

Brian Subirana (Contact Author)

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

Massachusetts Institute of Technology - Auto-ID Laboratory ( email )

100 Main Street
E62-416
Cambridge, MA 02142
United States

Chad C. Eckes

C Squared E, LLC ( email )

2821 E Lake of the Isles Pkwy
Minneapolis, MN 55408
United States
508.667.3890 (Phone)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

100 Main Street
E62-416
Cambridge, MA 02142
United States

George Herman

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

100 Main Street
E62-416
Cambridge, MA 02142
United States

Sanjay Sarma

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

100 Main Street
E62-416
Cambridge, MA 02142
United States

Michael Ian Barrett

University of Cambridge - Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom
+44 01223 339600 (Phone)
+44 01223 339701 (Fax)

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