An Instrument for Assessing the Organizational Benefits of IS Projects

Abstract

This paper reports the development of an instrument to measure the organizational benefits of IS projects. The basis for this instrument was a published framework that suggests three categories of such benefits: strategic, informational, and transactional. In a cross-sectional study of 178 IS projects proposed and approved for development, this framework was operationalized and empirically tested using the measurement model of LISREL. The analysis culminated in the validation and refinement of the these categories. The final instrument offers items under three separate subdimensions of strategic benefits: competitive advantage, alignment, and customer relations. Informational benefits are similarly comprised of information access, information quality, and information flexibility. Finally, transactional benefits are also shown to be of three types: communications efficiency, systems development efficiency, and business efficiency. Implications of this multidimensional instrument for IS practitioners and researchers are discussed.