But how does the company assign a dollar value to for

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: systems, where order volume is a critical measure. But how does the company assign a dollar value to, for example, the increased customer satisfaction generated by a new, easier-to-use interface for its customer information system? During 2001, declining sales and an uncertain economic future meant companies had to choose IT projects that yielded the greatest return on investment or gave the biggest strategic advantage. Gary Clark, director of corporate IT services at La-Z-Boy Inc., the leading U.S. manufacturer of upholstered In Practice furniture, said, “Previously, we would look primarily at high-level issues. Now, we’re not only examining the details of a project but also the underlying assumptions and the business case. It’s all about cost and results.” La-Z-Boy decided to postpone projects related to information security and general business systems but moved ahead with strategic technology projects. For example, analysis of a new payroll and human resources system showed that it should lower costs for the entire organization. Sources: Shari Caudron, “The Tao of E-B...
View Full Document

Ask a homework question - tutors are online