Towards a Methodology to Assess Changes in IT Business Value in Terms of Business Process Performance

The question of to what extent IT contributes to business success has repeatedly examined in both science and practice. In this context, literature strongly indicates that the IT business value is best observed on the level of business processes. However, the methodologies by which the contribution of IT can be systematically analyzed on a business processes level are currently insufficient. Therefore, this paper presents a methodology which, proceeding from a given status quo, analyzes and measures changes in IT usage in business processes. The proposed methodology combines the possibilities of the methods Data Envelopment Analysis and Business Process Simulation. An example of application will demonstrate how effects on Business Process Performance resulting from changes in IT usage can be analyzed and measured in a practical application by means of this methodology. The application of this methodology is demonstrated taking into account a loan application process. The results show that this methodology bears potential for analyzing scientific and practical research questions about the quantification of IT contribution to business value.

[1]  A. Charnes,et al.  Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis , 1984 .

[2]  Marcello Braglia,et al.  Data envelopment analysis for dispatching rule selection , 1999 .

[3]  Razvi Doomun,et al.  Business process modelling, simulation and reengineering: call centres , 2008, Bus. Process. Manag. J..

[4]  Cláudia S. Sarrico,et al.  Pitfalls and protocols in DEA , 2001, Eur. J. Oper. Res..

[5]  Moe Thandar Wynn,et al.  Workflow simulation for operational decision support , 2009, Data Knowl. Eng..

[6]  Andrew Greasley.  Using business-process simulation within a business-process reengineering approach , 2003, Bus. Process. Manag. J..

[7]  Matthias Goeken,et al.  Wertbeitrag der IT als Gegenstand der IT-Governance und des IT-Controllings , 2009 .

[8]  Varun Grover,et al.  Business Value of IT: An Essay on Expanding Research Directions to Keep up with the Times , 2008, J. Assoc. Inf. Syst..

[9]  Michael Leyer,et al.  Combining Data Envelopment Analysis and Business Process Simulation for Analyzing the Efficiency of Business Processes , 2010 .

[10]  Cláudia S. Sarrico,et al.  Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver Software , 2001, J. Oper. Res. Soc..

[11]  Andy Neely,et al.  Performance measurement system design , 1995 .

[12]  Abraham Charnes,et al.  Measuring the efficiency of decision making units , 1978 .

[13]  John R. Venable,et al.  A framework for Design Science research activities , 2006 .

[14]  M. Aguilar,et al.  Business process simulation: a fundamental step supporting process centered management , 1999, WSC'99. 1999 Winter Simulation Conference Proceedings. 'Simulation - A Bridge to the Future' (Cat. No.99CH37038).

[15]  Patrick R. McMullen,et al.  Assembly line balancing using simulation and data envelopment analysis , 1996 .

[16]  Kenneth L. Kraemer,et al.  Executives’ Perceptions of the Business Value of Information Technology: A Process-Oriented Approach , 2000, J. Manag. Inf. Syst..

[17]  Patrick R. McMullen,et al.  Using Simulation and Data Envelopment Analysis to Compare Assembly Line Balancing Solutions , 1999 .

[18]  A. Neely,et al.  A literature review and research agenda , 1995 .

[19]  Martin Bichler,et al.  Design science in information systems research , 2006, Wirtschaftsinf..

[20]  E. Brynjolfsson,et al.  Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending , 1996 .

[21]  J. Banks,et al.  Discrete-Event System Simulation , 1995 .

[22]  J. M. Pennings,et al.  Information technology and organizational performance , 1994 .

[23]  Peter B. Seddon,et al.  Assessing and managing the benefits of enterprise systems: the business manager's perspective , 2002, Inf. Syst. J..

[24]  E. Brynjolfsson,et al.  Beyond Computation: Information Technology, Organizational Transformation and Business Performance , 2000 .

[25]  Andreas Burger,et al.  Performance analysis on process level: benchmarking of transactions in banking , 2010 .

[26]  Salvatore T. March,et al.  Design and natural science research on information technology , 1995, Decis. Support Syst..

[27]  Patrick T. Harker,et al.  Financial Institutions Center Measuring the Efficiency of Service Delivery Processes : With Application to Retail Banking , 1997 .

[28]  S. E. Meikle,et al.  The Role of Discrete Event Simulation Techniques in Finite Capacity Scheduling , 1995 .

[29]  E. Brynjolfsson,et al.  Information Technology As A Factor Of Production: The Role Of Differences Among Firms , 1995 .

[30]  Paul Bratley,et al.  A guide to simulation , 1983 .

[31]  L KraemerKenneth,et al.  Executives' perceptions of the business value of information technology , 2000 .

[32]  Holger Hansmann,et al.  Konstruktion von Methodiken: Vorschläge für eine begriffliche Grundlegung und domänenspezifische Anwendungsbeispiele , 2001 .

[33]  Kenneth L. Kraemer,et al.  Review: Information Technology and Organizational Performance: An Integrative Model of IT Business Value , 2004, MIS Q..

[34]  Mariëlle den Hengst,et al.  Modelling the integration of BP and IT using business process simulation , 2005, J. Enterp. Inf. Manag..