Information Technology Reference
In-Depth Information
structures, processes. Unlike the macro-level of the model to be described in Section
2.6, the micro-level must be contextualized to a particular technology. Here, we
will consider the context of PLM applications. As noted previously, PLM seeks
to consolidate all the activities across the NPD life cycle (ideation, design, devel-
opment, engineering, manufacturing process management, service, maintenance,
product line growth, and retirement) under a common application umbrella, with
a shared repository of product data (Bylinsky, 2004).
2.5.1 Linking IT Deployment and Business Value
In the end, IT can only provide business value based on how - and, how much - it is
actually deployed. Despite this fact, comparatively few studies of IT business value
have actually incorporated IT use:
Perhaps one of the most serious issues [pertaining to studies of IT business value] has been
that few studies have captured the actual usage of the IT. In addition, merely examining the
dollars invested in IT may not be an accurate reflection of the effectiveness of IT because
the extent of its usage may vary across industries, firms, or processes. Thus, there is a
void in the IT payoff literature in evaluating the impact of individual technology usage on
organizational performance. (Devaraj & Kohli, 2003, p. 27)
However, there are exceptions. Devaraj and Kohli (2003) consider the direct
effects of IT use on performance, as does Hitt et al. (2001). Also, some work
by innovation researchers has posited direct links from innovation to organiza-
tional performance (Dos Santos & Peffers 1995; Karimi et al., 2007; Mishra et al.,
2007; Ramamurthy, Premkumar, & Crum, 1999; Subramanian & Nilakanta, 1996).
While we do not doubt that these direct links are extremely important, we are more
interested in specifying how the presence of complementary, initiative-specific orga-
nizational elements magnifies the value producing potential of any given level of IT
deployment.
2.5.2 Complementarities Between Organizational
Elements and IT Deployment
The full advantages of [information] technologies cannot simply be purchased off the
shelf; they are won by patiently and carefully tailoring the technology to fit a given firm's
organizational and strategic context. At the same time, organizational skills, procedures,
and assumptions within the firm need to be adapted to fit the new technology. (Tyre &
Orlikowski, 1993, p. 13)
The idea that technology and organization must be fitted to each another in
some fashion is a consistent theme that can be seen in such diverse perspectives
on technology implementation as socio-technical design (Lyytinen & Mathiassen,
1998), business process reengineering (Davenport & Short, 1990), structuration
(Orlikowski, 1992), and mutual adaptation (Leonard-Barton, 1988). However,
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