Impact/value – Hammer ICT value
Michael Hammer and Glenn Mangurian, in year 1987 presented an article named ‘the changing value of communication technology,’ which introduced the impact/value framework designed specifically for thinking and estimating the value of IT or information technology. In consideration to time, distance and relationships various factors need to be analyzed:
Where time is considered, compression of time plays a vital role, and as far as distance is concerned surpassing geographical limitations specifically is important. In case of relationships, the organizational relationships at times can be redefined. Efficiency, effectiveness and innovation are the three fundamental terminologies which are often used in the Impact/Value ICT value by Hammer. Efficiency can be defined as doing the project or thing in right and appropriate systematic manner, for instance the increase in production where as effectiveness is concerned with taking right step or doing the right thing, for instance proper management. However, innovation refers to doing some new things like improvement and modification in goods and services. Following are the advantages of ICT defined by Hammer:
Strategic benefits
- It includes advantage in competition
- In proper alignment and
- In good relationship with the customers
- Informational benefits
- It involves access to information
- Quality of the information and
- Flexibility of the information
- Transactional benefits
- It includes efficiency in respect to the communication
- Efficiency of the systems development
- And efficiency in business
Hammer has also described BPR or Business Process reengineering method, by defining it as a basic reconsideration and redesigning of processes within the organization, so as to attain strong improvement in the present performance of speed, its services and price. Impact/value ICT value by Hammer has affected the Information technology largely in a positive way and provided a method to evaluate the Information and communication technology.
Written by: Matt
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Tagged as bpr, business process reengineering, communication efficiency, communication technology, compression of time, doing the right thing, efficiency effectiveness, geographical limitations, good relationship, impact value, information quality, michael hammer, organizational relationships, price impact, proper alignment, proper management, systematic manner, terminologies, value framework, year 1987 + Categorized as Business, Economy articles, Online economy