Invest in IT but don't forget the organisation
نویسندگان
چکیده
Discussion and research on the payoff of the investments in information technology and information systems have long history and there is no general agreement on the subject. Information technology has, however, already penetrated the organisations to the extent that the relevant question is how to get payoff from the already made and future obligatory investments. In this paper, we take the organisational model presented by Leavitt as our starting point in studying the effects of IT investment on the basic organisational elements. We present the results from a case study comparing the technologies from different generations and interpret the results against the backdrop of the model. The findings indicate that despite the noteworthy shortening of the throughput time at the sub-process level, the investment in information technology was not profitable. It seems that the unforeseen effects of the technology on other organisational elements undermine the profitability. Therefore, an IT investment is not profitable in itself, but a precondition or enabler creating opportunities for potential benefits. Realisation of the potential benefits calls for, however, concurrent measures in the other organisational elements, and consequent reallocation of the funds in developing these elements in parallel with IT.
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