A strategic theoretical framework to safeguard business value for information systems

Abstract

The phenomenon of business value dissipation in mature organisations as an unintended by-product of the adoption and use of information systems has been a highly debated topic in the corporate boardroom awakening the interest of practitioners and academics alike. Much of the discourse tends to focus on the inability of organisations to unlock and realise the intended benefits to be harvested through large information systems investments. While the business case for investing in large technology programmes has been thoroughly investigated, the human agent that causes value erosion through his interaction with information systems (IS), has not received the studied attention it deserves. This study examines the use of technology in organisations by considering the dichotomy inherent in IS where its introduction for the purposes of creating new or sustaining existing business value subsequently also inadvertently dissipates value. The study proceeds to investigate the root people-induced causes resulting in the unintentional dissipation of value and presents an empirically validated model suggesting that human agents do not only create value for organisations through their use of IS, but at the same time, deliberately or inadvertently, dissipate value. The root people-induced causes resulting in the unintentional dissipation of value is delineated within a Theoretical Technology Value Framework that is constructed from a review of the extant literature, and delineates the overall unintentional value destroying causes and effects of IS on organisations. The Theoretical Technology Value Framework is forthwith applied as a basis for the development of a set of questions to support both qualitative and quantitative investigations from which an Archetypical Technology Value Model was derived. Finally, an Archetypical Technology Value Model is presented as a benchmark and basis to identify, investigate, mitigate and minimise or eliminate the unintentional value destroying effects of IS on Information Technology driven organisations. The study concludes with implications for both theory and practice and suggestions on how value erosion through the activities of the human agent may be identified, modeled and mitigated. Ultimately, recommendations are offered towards the crafting of more effective IS.