• Investing in information technology does not guarantee good returns
  • Complementary assets
  • Perspectives on Information Systems




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    Perspectives on Information Systems
    Management Information Systems
    Chapter 1 Information Systems in Global Business Today
    Perspectives on Information Systems
    Management Information Systems
    Chapter 1 Information Systems in Global Business Today
    From a business perspective, information systems are part of a series of value-adding activities for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance, and, ultimately, increase firm profitability.
    Figure 1-7
    The Business Information Value Chain
    Perspectives on Information Systems
    Management Information Systems
    Chapter 1 Information Systems in Global Business Today
    Although, on average, investments in information technology produce returns far above those returned by other investments, there is considerable variation across firms.
    Figure 1-8
    Variation in Returns on Information Technology Investment

    Investing in information technology does not guarantee good returns

    • Investing in information technology does not guarantee good returns
    • Considerable variation in the returns firms receive from systems investments
    • Factors:
      • Adopting the right business model
      • Investing in complementary assets (organizational and management capital)

    Perspectives on Information Systems
    Management Information Systems
    Chapter 1 Information Systems in Global Business Today

    Complementary assets:

    • Complementary assets:


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    Perspectives on Information Systems

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