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An important management question today is whether or not the anticipated benefits of Information Technology (IT) investments are being realized. In this paper, we consider this problem to be a measurement related issue, and propose a methodology for determining the economic impacts or "business value" of Information Technologies. It involves partitioning the data set based on economic performance and IT related differences, and focusing on intermediate level output variables for tracing and measuring IT contributions. In addition to answering the question above, the proposed methodology helps in deriving implications for better management of the IT function.
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Barua et al. (1989) studied this question.
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