In their 1987 article “The changing value of communications technology” Michael Hammer and Glenn Mangurian presented the Impact/Value framework that can be used to think about the value of Information Technology.
Vertical axis of the Impact/Value framework
- Time: in particular time compression is important.
- Distance: in particular overcoming geographical limitations is significant.
- Relationships: sometimes organizational relationships can be redefined.
Horizontal axis of the Impact/Value framework
- Efficiency is Doing the “things” right, for example increased productivity.
- Effectiveness is Doing the “right” thing, for example better management.
- Innovation is Doing “new” things, for example improve products and services.
Alternatively, the benefits of Information Technology can be categorized as:
A. Strategic Benefits
A1. Competitive Advantage
A3. Customer Relations
B. Informational Benefits
B1. Information access
B2. Information quality
B3. Information flexibility
C. Transactional Benefits
C1. Communications Efficiency
C2. Systems Development Efficiency
C3. Business EfficiencyBusiness frameworks like Impact/Value Framework are invaluable to evaluating and analyzing various business problems. You can download business frameworks developed by management consultants and other business professionals at Flevy here.