Advances in Concept, Framework and Methodology for Measuring the Business Competitiveness through IT

Abstract

The IT (Information Technology) investment scale had been increased gradually according as IT prevails over the industry and becomes essential means in business processes. The IT investment activities, however, usually yield the invisible performance so that it is not simple to derive the agreement of the top management or whole business units. Accordingly, effort to measure and control the business value through IT investment had been continued in academia and industry. So, we arrange several previous researches, which are related with the measurement of IT performance, with using Y-MODEL. The Y- MODEL, a framework for the IT performance evaluation, can explain all researches that measure the Economic Performance through IT (EPTI) by quantitative methods. Also, present the T-MODEL that evolves in Y-MODEL. The T-MODEL is based on the specific and logical alignment between the IT investment and the business performance, and it takes a role as a framework that can evaluate the Business Competitiveness through IT (BCTI) more reasonably. The IT performance evaluation system, which is developed based on T-MODEL, had been applied in various types of business, focused on large enterprises of Republic of Korea, such as manufacturing, financial, distribution, and so on. And its validity was verified.