Towards a Theory of Value Latency for IT Investments

Multiple studies in the information systems (IS) literature recognize that information technology (IT) investments may not yield immediate returns. Nevertheless, there has been a lack of theoretical and empirical research to understand and explain this value latency phenomenon. We propose a new theoretical perspective on the latency of IT value and argue that IT value flows occur in three phases: the value dormancy phase, the value trigger phase and the value transformation phase. We substantiate the proposed model by establishing theoretical congruity with the theory of punctuated equilibrium and chaos theory. We validate our theory by mapping prior IT value literature onto its theoretical dimensions. We suggest key strategies that senior executives can use to manage the value lags that their firms experience. To validate the theory, we use it to explain differences in the IT investment value lags experienced by two organizations.

• Type: Conference
• Year: 2005
• Where: HICSS
• Authors: Kim Huat Goh, Robert J. Kauffman
• Keywords: Biometrics, HICSS 2005, System Sciences, Value Dormancy Phase, Value Latency Phenomenon, Value Trigger Phase