how people, technology, and organizational elements work together to createthe systems.Complementary Assets: Organizational Capital andthe Right Business ModelAwareness of the organizational and managerial dimensions of information sys-tems can help us understand why some firms achieve better results from theirinformation systems than others. Studies of returns from information technol-ogy investments show that there is considerable variation in the returns firmsreceive (seeFigure1.8). Some firms invest a great deal and receive a great deal(quadrant 2); others invest an equal amount and receive few returns (quadrant4). Still other firms invest little and receive much (quadrant 1), whereas othersinvest little and receive little (quadrant 3). This suggests that investing in infor-mation technology does not by itself guarantee good returns. What accounts forthis variation among firms?Business ProcessesInformation Processing ActivitiesBusiness ValueManagement ActivitiesSupplyChainManagementEnterpriseManagementCustomerManagementKnowledgeManagementCoordinatingFirmProfitabilityandStrategicPositionTransfor-mationinto BusinessSystemsDataCollectionandStorageDisseminationPlanningControllingModeling andDecisionMakingFIGURE1.7THE BUSINESS INFORMATION VALUE CHAINFrom a business perspective, information systems are part of a series of value-adding activities for acquiring, trans-forming, and distributing information that managers can use to improve decision making, enhance organizationalperformance, and, ultimately, increase firm profitability.54Part OneOrganizations, Management, and the Networked Enterprise
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