Mr And It

How to play the IT card

Clive Nancarrow
Bristol Business School, UWE
Martin Oxley
NFO Europe Interactive
Merlin Stone
Julie Tinson
Bristol Business School, UWE

The Literature
Hard Evidence

It is estimated that, worldwide, businesses spend $2 trillion on IT every year (HBR 2003), yet a significant positive correlation between investment and productivity was only observed in 6 out of 59 business sectors (see Seeley and Hagel). Strassmann's research has also demonstrated that profitability and IT expenditure are unrelated, 'even if identical technologies are used'. Weil and Broadbent (1998) and Pisello (2003) also note that those who invest most heavily in IT do not always gain the greatest value. Assuming these observations are valid, what should we conclude? What are the conditions for IT to become 'killer technology'? Our review and interpretation of the debate suggests a number of key questions, which we now address.

Conditions when IT becomes 'Killer Technology'