"Why is information technology investment not paying off?"

Mathe, H. T. (2005-03)

Thesis (MPhil)--Stellenbosch University, 2005.

Thesis

ENGLISH ABSTRACT: This paper discusses factors that contribute to information technology (IT) investment not paying off as might have been expected. The main purpose is to describe this IT _productivity paradox. The paper explores ideas that align organizations' business strategies and information technology as a key to achieving improved productivity. Which are possible to properly measure in terms of the financial results? The main aims and objectives are to find out why managers invest in IT; whether there is a phenomenon such as an IT productivity paradox; whether IT pays off as expected; and how IT impacts on organizations. The study will investigate options for proper management of information technology and data structures. It is necessary to ascertain whether ensuring proper IT implementation has a positive impact on productivity, leading to increased innovation and performance. The research design builds on research done on the use of IT in organizations, usmg a qualitative research method. This research paper looks at organizational issues such as IT management styles, political and ethical issues, and work settings. The paper looks at organizations across the service and manufacturing sectors to determine their production, innovation, and profits into their existing organizational processes and how technology is interpreted. A group of IT users, IT managers and analysts were used as a sample to study the way IT managers and knowledge workers encounter information technology in organizations. The research method used in this research paper is called the informant approach, to take points of entry IT users would provide. This means that the interviewee, in this case the IT user was questioned on the use of information technology tools to gather information. In this study the aim was to conduct interviews with IT users and those they work with about their experiences. The sampling population was selected on the basis that they use this technology. In the data collection method a second interview was used to gather first-hand responses from the respondents to help me consolidate the information gathered to validate and ensure that it is reliable. The validity and reliability aspect of this research paper are based on the main sources of data and interpretation and adopts coding as the main technique of analysis. The internal reliability of this research methodology concern itself with the research methods that were used within this research paper. Measures to be taken in the paper are to obtain internal reliability in systematic gathering of data. The last part of this paper presents the conclusions and recommendations for changes to be made by managers and those investing in IT. IT managers should plan strategically when dealing with sales and marketers in order to put business needs before the needs of IT or systems. Technology should fit business needs rather than the business adjusted to fit the technology. IT should not cost an organization any additional profit it generates.

AFRIKAANSE OPSOMMING: Belegging in Informasietegnologie skyn nie so betalend te wees as wat aanvanklik verwag is nie. Hierdie studie beskryf bogenoemde IT produktiwiteitsparadoks, en ondersoek faktore wat daartoe bydra. Verder word planne wat ten doel stel om organisasies se besigheidsstrategie en IT te laat saamwerk ten einde produktiwiteit te verhoog, ondersoek. Is dit moontlik om hierdie te meet in terme van finansiële resultate? Ander voornemens is om te bepaal waarom bestuurders in IT belê, is dit so betalend soos aanvanklik geskat is, hoe dit die maatskappy beïnvloed en bestaan daar werklik 'n verskynsel soos die IT produktiwiteitsparadoks? Hierdie studie sal moontlikhede ondersoek vir kundige bestuur van IT en datastrukture. Dit is nodig om vas te stel of die deeglike toepassing van IT 'n positiewe uitwerking het op vernuwende denke en produktiwiteit. Die navorsingsontwerp is gebaseer op navorsing wat reeds gedoen is oor die gebruik van IT in organisasies. In hierdie navorsing word ondersoek ingestel na organisatoriese kwessies soos IT bestuursmetodes, politieke en etiese invloede en werksomstandighede. Hierdie dokument neem maatskappye regoor die diens- en vervaardingsektore in oënskou ten opsigte van hul produksie, vernuwende idees en winsmarge, hoe hierdie aspekte inpas in hul huidige organisatoriese prosesse en hoe tegnologie interpreteer word. 'n Groep van IT gebruikers, IT bestuurders en analiste is as monster geneem, ten einde die manier waarop IT bestuurders en inligtingwerkers informasietegnologie teëkom in maatskappye te bestudeer. Die navorsingsmetode wat tydens hierdie studie gebruik is, word genoem die informantbenadering, wat behels om informasie te gebruik wat deur IT gebruikers verskaf word. Dit beteken dat die IT gebruiker ondervra word oor die gebruik van IT toerusting om informasie te versamel. Die doelwit was om onderhoude met IT gebruikers te voer, asook diegene met wie hulle saamwerk, in verband met hulondervindinge. Die steekproefpopulasie is gekies op grond daarvan dat hulle IT gebruik. In die datainsamelingsmetode is 'n tweede onderhoud gehou om eerstehandse menings van die respondente te verkry, met die doel om die informasie tot dusver te bevestig as betroubaar. Die geldigheid- en betroubaarheidsaspekte van hierdie dokument is gebaseer op die hoofbronne van data en vertolking en gebruik kodering as die primêre tegniek van analise. Die intrinsieke betroubaarheid van hierdie navorsingsmetode is gebaseer op die navorsingsmetodes wat gebruik is vir hierdie studie. Stappe is geneem tydens die studie om intrinsieke betroubaarheid te verkry deur die sistematiese verkryging van data. Die laaste deel van hierdie dokument bied die gevoltrekkings aan en ook voorstelle vir veranderings wat gemaak kan word deur bestuurders en diegene wat belê in IT. IT bestuurders behoort strategies te beplan wanneer hulle in aanraking kom met handelaars, om doelgerig die benodighede van die maatskappy te stel voor die benodigdhede van die IT en gepaardgaande sisteme. Tegnologie behoort in te pas by die benodigdhede van die maatskappyeerder dat die maatskappy hoef aan te pas by die tegnologie. IT behoort nie die maatskappy meer uit die sak te jaag as wat dit aan wins genereer nie.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/50547
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