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Journal Article

Critical Organizational Challenges in Delivering Business Value from IT: In Search of Hybrid IT Value Models  pp130-146

Nazareth Nicolian, Christine Welch, Martin Read, Martyn Roberts

© Sep 2015 Volume 18 Issue 2, The special issue from ECIME 2014, Editor: Jan Devos, pp93 - 210

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Abstract: This study forms part of a larger research project to explore and analyze the perceived value of IT and the organizational competencies needed to deliver that value. By identifying and evaluating the challenges faced by Lebanese organizations, t his paper provides empirical evidence in support of hybrid models of IT value. While process‑based IT value models provide an explanation for howŽ IT value is created, and what steps occur to create that outcome, they lack the contingency theory found in variance models, which explain whyŽ IT value is realized, and what variable moderate that outcome. On the other hand, variance models alone are also ill‑equipped to explain the greater scope and impacts of IT investments. Hybrid models combine both proc ess and variance perspectives to provide a more comprehensive theory of IT value realization. Structured interviews are conducted with the Chief Information Officers (CIO) of 36 medium and large size Lebanese organizations to discover the challenges fa ced in delivering value from IT investments. Of the 14 challenges discovered, seven point to the need for process orientated competencies and these include Change ManagementŽ, Organizational ReadinessŽ, Relationship ManagementŽ, Benefits ManagementŽ, IT GovernanceŽ, IT Architecture ManagementŽ, and IT Talent ManagementŽ. The other seven challenges are variance oriented and point to the factors that inhibit or enable deriving IT value, and these include internal factors, such as: Family Business O wnershipŽ, and Budgetary ConstraintsŽ, and other external factors, such as: Political/Social/Economic InstabilityŽ, Telecommunications/Bandwidth IssuesŽ, Lack of Governmental IT LawsŽ, Local Cultural IssuesŽ, and Immature Local Suppliers/VendorsŽ. R ather than continuing an already‑saturated research conversation about the dependent variable, IT ValueŽ and whether IT creates business value, this study contributes to the independent variable research stream ‑ the investigation of how to derive value from IT, and when and under which conditionsŽ value is realized, and for conceiving a Hybrid model explaining the IT value proposition.


Keywords: Keywords: IT value Models, Organizational IT competencies and IT challenges, ERP CSFs, CIO


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