Improving the return on IT investment: the productivity paradox

Over the past four decades, information technology (IT) has had a profound effect on the US economy, resulting in a shift from a manufacturing to an i nformation economy. This effect, however, has also produced what may be lab eled the paradox of IT productivity. While the percentage of a firm's budge t spent on IT continues to increase, there is increasing evidence that firm s fail to obtain the benefits of these expenditures within the anticipated time frame. The reason for delays in obtaining the benefits is due to manag ement's failure to strategically leverage the full potential of IT and thei r failure to overcome resistance to change. These problems are discussed in depth and solutions for them are suggested. (C) 2000 Elsevier Science Ltd. All rights reserved.