IT Business Value Reinvestigation: From the Efficiency and Effectiveness Perspective

Abstract

Abstract:

The controversy of IT business value has been a hot issue in recent years. It is a new perspective to evaluate IT business value from efficiency and effectiveness. The triangle model of IT allocation efficiency, IT effectiveness and input-output efficiency is proposed. We analyze the data of Macao hotel industry from 2001 to 2011 by the adjusted three-stage Data Envelopment Analysis. It shows that after the massive investment on IT of Macau hotels in 2006 and 2007 the pure technology efficiency from 2008 to 2011 is higher than that from 2000 to 2003. The efficiency of the resource usage is improved by IT. IT effectiveness has a significant relationship with input-output efficiency, which means IT helps to improve the hotel performance. There is no significant relationship between IT allocation efficiency and IT effectiveness, which means there should be more improvement to optimize the planning of IT resource allocation. The findings offer a new perspective and research methodology for IT business value theory and provide decision reference for the hotel managers and policy makers.

Key words: IT business value, efficiency, effectiveness, three-stage DEA, hotel

Zhu Xiaowu. IT Business Value Reinvestigation: From the Efficiency and Effectiveness Perspective[J]. , 2015, 27(8): 68-76.

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