How Information Technology Creates Business Value in the Past and in the Current Electronic Commerce (EC) Era

The purpose of tins paper is to discuss how IT, information technology, creates additional business value. Firstly, in order to articulate the IT added value creation mechanism, we introduce a new framework, called the “3C-DRIVE,” composed of two axes: (1) 3C: Company, Competitor, and Customer, and (2) Direction, Readiness, Information Technology, and Value Evaluation. The 3C-DRIVE framework has bird’s-eye-view, dynamic, and emerging characteristics. Secondly, we apply tins framework to the existing research and perspectives regarding the relationship between business and IT. Thirdly, we design a mathematical model for computer simulation task and apply it to several conceivable cases, taking into consideration of the factors such as organization, readiness and business environment in addition to the IT investment. As a result we may conclude that complementary factors other than the IT investment greatly enhance the added business value front IT especially in the light of the perspective of the current EC era.