Measuring the Impact of Information Technology on Value and Productivity using a Process-Based Approach: The case for RFID Technologies
Author(s)
Subirana, Brian
Eckes, Chad
Herman, George
Sarma, Sanjay
Barrett, Michael
Date Issued
December 10, 2004
Series/Report no.
MIT Sloan School of Management Working Paper;4450-03
Abstract
There has been a lot of research addressing the relationship between Information Technology (IT) investments and
productivity. Most of the work has been based on firm-level metrics such as total IT investment. We present what
we believe is one of the first attempts to create a systematic methodology to assess the impact of IT in business
process performance metrics. Our approach builds on the MIT Process Handbook as a basis to both guide the
analysis and capture the resulting knowledge for future use. We will present preliminary results on how to use such
methodology to analyze the impact of a given IT technology, namely RFID (radio frequency identification devices),
in performance metrics of a consumer packaged goods company. We are interested in looking at how IT may
impact performance metrics such as productivity, cost and value. We believe our methodology can help CPG
companies prioritize their investments. We show results on how the specialization features of the MIT Process
Handbook can incorporate performance metrics to help assess such investments in RFID.
Subjects
IT investments
IT productivity
Information Technology
MIT Process Handbook
Persistent DSpace Link
