Information Technology in the Service Society A Twenty-First Century Lever (1994) / Chapter Skim
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D How the Committee Conducted Its Study
D How the Committee Conducted Its Study
Pages 247-265
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From page 247... ...
However, after examining the macroeconomic data, existing surveys and publications on how IT has been used in services, the taxonomy of IT as it relates to performance, and the management practices of successful and less successful users of IT in services, the committee determined that the proper issue for investigation was not determining the impact of IT on standard measures of productivity in services, but rather understanding the impact of IT on the overall performance of service activities. As discussed in the main text of this report, many dimensions of performance are difficult or impossible to quantify, let alone to collect reliable data on.
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From page 248... ...
The committee drew on secondary literature and its own experts in the air transport, communications, commercial banking, insurance, retail-wholesale trade, and health care industries. These industries were selected because they had a wide range of measurable improvements in productivity, high levels of investment in IT, and different contexts in which to introduce IT; reflected important implications for employment and public policy; and exhibited extensive variety in the sophistication and scale of the IT installed.
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From page 249... ...
All together, these firms had nearly $500 billion in revenues in 1991 and employed nearly 3 million peopled Because the cooperation of key individuals was crucial, access to the firm was sought at the highest possible level. In each company, interviewers attempted to contact the chief executive officer or chief operating officer, the senior executives for IT, a major operating officer, and the chief financial officer.
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From page 250... ...
parameters, in interpreting correlation data, and in providing support for causal hypotheses. Since the data from the interviews were not collected utilizing a statistical sample, common themes are reported in the text using qualifiers such as "virtually all" (90 percent or more)
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From page 251... ...
Yes No 37% 63% Do the payback criteria differ from those for other Investments? Yes N4 3 1 °% 69% Observations and Additionai Commend ~ Time horizons of IT strategy are around 3-S years, generally with updates annually through capital budgets and specific operational plans keyed In at six-month to l-year Intervals.
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From page 252... ...
Type of IT investment INFORMATION TECHNOLOGY IN THE SERVICE SOCIETY Equal to Comparable Indexers Negative Cost at Marginal High to Other manage Return Capital Return Return lovestments Cost Reducing 0 0 0 f3 48 39 Mew Product 5 0 5 16 42 32 Baste Infrastructure 11 16 16 11 16 32 Desktop IT 0 15 8 8 23 46 Mandated Systems 8 f7 17 17 17 25 N.B. Percentages are based on number of responses to individual questions.
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From page 253... ...
Observations and Additional Comments ~ Poster evaluations are less universally pursued than pre~pr~ect assessments. ~ Cost frequent post-investment eYaluat~on$ are performed on cost re duction and new-product programs.
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From page 254... ...
2~ OUTBOX BOX 4 How do you "count for different costs In your IT evaluations! Capitalized Expensed Hardware 89% 1 lo Software 34% 66% n~g ^~ i id ~ rug Cogs 17% 8]
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From page 255... ...
Observations and Additional Comments ~ The mix is about even between increased centralization (usually of data centers or databases3 arid Increased decentralization (usually of operations)
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From page 256... ...
Rows may not add to ~00% because of rounding. Observations and Additional Comments Interactive Throughout 12% · Users are involved in desigr~ of IT projects at design and ampler mentation levels.
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From page 257... ...
~ Formal metrics to measure the quality of service outputs are almost always engineering metrics (such as system response times, computer availability percentages, cycle times for operations, etc.) or customer survey data (expressing customers' view of the services of the company)
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From page 258... ...
Services include all items sold in trade which are neither products nor constructions. The services industries include: financial services, reta~ling, wholesaling, transportation, communications, public utilities (such as sewer, garbage collection, electric companies, etc.)
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From page 259... ...
Interviews do not seek proprietary data, but useful patterns and insights haYing to do with measuring and improving the performance of IT in services activities. If copies of any relevant reports or company documents are available, they would help ensure accuracy.
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Were other criteria stated explicitly in advancer FLOW well or badly did the project meet initial expectations, goalst 2. How was Me technology defied?
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From page 261... ...
4. In light of the above, what would be your overall evaluation of the way IT investments enabled you to improve services performance in your company' Why' What are the most useful ~r~s~ghts or patterns that analysis at past projects offers for Future IT ~nvestn~ents'
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