Strategic IT, But Not by ITself: On the Relevance of the by Adriaan Willem Vincent Breukel

By Adriaan Willem Vincent Breukel

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Extra resources for Strategic IT, But Not by ITself: On the Relevance of the Organizational Context for Strategic Success with IT

Sample text

1). 12 Chapter 1 The main dimension in assessing the IT performance is the impact of IT on the strategic position (Saunders & Jones 1992, pp. 71, 72). IT managers were questioned about their ideas on the key issues in IT management. Brancheau and Wetherbe conducted a series of delphi surveys in the USA in the 1980s (Niederman et al. 1991). In addition, Hartog & Herbert surveyed the ten most important IT management issues as seen by leading information systems professionals (Hartog & Herbert 1986, p.

We can conclude that this system too had a non-strategic aim at the beginning; the strategic advantages for American evolved while using it. 3 Strategic IT as a main issue for IT managers The strategic relevance of IT not only becomes clear from the anecdotical examples of firms gaining competitive advantage while using IT, it also appears to be one of the main managerial issues in the field of information systems (Earl 1993, p. 1). 12 Chapter 1 The main dimension in assessing the IT performance is the impact of IT on the strategic position (Saunders & Jones 1992, pp.

19). Most authors point to the rigorous decline in the costs of IT keeping the functionality constant (or a rising functionality with constant costs). For IT, these costs are defined by the costs per MIP (millions of instructions per second). This relative drop in IT costs makes this technology economically attractive compared with other technologies (Scott Morton 1989). Benjamin & Scott Morton used a ratio to Introduction 19 express this attractiveness: capital equivalence ratio, the costs of technology divided by the costs of labor (Benjamin & Scott Morton 1988).

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