– Financial measures, available aplenty, of returns on investments in information technology (IT) are deemed insufficient in terms of inclusion of intangible benefits. The purpose of this paper is to re-conceptualize the IT business value (ITBV) benefits by Gregor et al. (2006) after a contemporary evaluation.
– IT experts have been administered the instrument to provide insight into the contemporary cogitation of ITBV benefits and factor analyses are employed to re-conceptualize the ITBV benefits.
– Of the four ITBV benefits, the statistical analysis suggests that Informational and Transactional benefits need to be re-conceptualized. It is affected through a systematic linking of parameters – business strategy, objectives, information systems (IS) strategy, IS role and IS-business alignment profiles in that order.
– Operational definitions of re-conceptualized ITBV benefits have been presented which may be operationalized into components.
– The re-conceptualization provides managers with an enhanced understanding of ITBV in line with the alignment of IS with business objectives and strategy and guides managers to develop customized ITBV measures.
– The study employs factor analyses to analyse the ITBV benefits. It proves that the changing face of IT, wherein it is looked at as a value creator, needs an all-encompassing and contemporary envisioning of ITBV benefits. It also suggests an advanced typology based on further insightful IS literature.
