Impact/Value framework

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Valuing Information Technology. Explanation of Impact/Value framework of Hammer and Mangurian. ('87)



Impact/Value frameworkIn 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

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Compare with the Impact/Value framework: TDC Matrix  |  Strategic Thrusts  |  Twelve Principles of the Network Economy  |  Multi Channel Marketing  |  Strategic Alignment  |  Delta Model

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