Value assessment of IS/IT service provision within organizations

This paper presents a means-ends objectives network that can be useful in assessing value of IS/IT service provision in organizations. This network is developed following Keeney’s (1992) method of value focused thinking. This paper also highlights the importance of engaging in value focused thinking by presenting step by step application of the concept. A total of 71 interviews were completed; the preliminary analysis recognizes two areas where adequate consideration of value propositions will help in improving IS/IT service provision. Currently, an instrument is under development using this framework for more generalizable results. Such an assessment will help in remedying the bottlenecks, if any, in improving the competence of the IS/IT functional unit. 1. WHY ASSESS THE VALUE OF IS/IT SERVICE PROVISION? Assessing the value of information systems/information technologies (IS/IT) service provision has been the preoccupation of many researchers. Some have considered strategic management as a way forward, particularly Bowman’s (1974) notion of “rent” generation. Others have grounded themselves in industrial organization theory (Porter 1980). More recently, many researchers have been informed by the resource-based view of the firm (Rumelt 1984) as a means to understand the fundamental processes that transform resources into capabilities (for an application to design firm level capability, see Andreu and Ciborra 1996). Most studies focusing on the IT function level service provision have, however, considered user satisfaction, information quality, and individual/organizational impact as key determinants of success of organizational IT operations. DeLone and McLean (1992) identified six categories of IS success: system quality, information quality, use, user satisfaction, individual impact, and organizational impact. In addressing a similar issue, our intent is to take the debate a step further by considering concepts rooted in the strategy literature to assess the ability of an organization to deliver IT services to the users. Our aim is to conduct such an assessment by focusing on the value attached by the users to the ability of the IS/IT function in delivering IS/IT services. The concept of a value proposition focuses on benefits that end-users anticipate they will receive from service provision (Keeney 1999). In addressing the notion of value of IS/IT service provision, two classes of definitions need to be considered. The first homes in on the notion of “value proposition.” Values, according to Keeney, are “principles used for evaluation” (1992, p. 6), which are essential to assess “actual or potential consequences of action and inaction.” With respect to IS/IT service provision, the value proposition can be defined as the net benefit of the service received from the IT function within an organization in the process of doing one’s current work and planning for future use. The second class of definition relates to the concept of an “ability of the IT function.” We term this concept IT competence; that is, the ability of an enterprise to successfully leverage IS/IT related business processes and individual skills to achieve an objective (cf. McGrath et al. 1995). In the context of our research, it is the combination of abilities and resources that allow an organization to provide better IS/IT services or to garner rents (Bowman 1974; Selznick 1957). Advantages gained from such par excellence service stem from proprietary assets that are largely intangible and tacit (Prahalad and Hamel 1990). The objective of this research is to elicit such idiosyncratic resources and abilities (i.e., IT competencies) and assess the value of these resources and abilities from the users’ perspectives.