Impact/Value Framework

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

A2. Alignment

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 Efficiency

Business 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.

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Have you used Impact/Value Framework in your work? Please share your experiences and insights in the comments section below.

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