چکیده:
The increasing dependency of many businesses with information technology (IT) and the high percentage of the IT investment in all invested capital in business environment ask for more attention to this important driver of business. The limitation of capital budget forces the managers to look for more wise investment in IT. There are many cost-cutting techniques in the literature and each of them has a different impact on the organization. This study is one of the first steps in providing more insight on this issue via proposing a conceptual framework for strategic cost- cutting in IT. The literature review revealed that the strategic role of IT in organizations, IT costs structure, firm’s IT structure, senior management support and organizational learning are the important factors that affect the cost-cutting technique selection in IT. The proposed framework focuses on the strategic role of IT in business to suggest which cost-cutting techniques are the best to be applied in an organization in order to save costs while ensuring high-quality service and support for business growth and maximizing business value from IT spending.
خلاصه ماشینی:
Strategic Cost-Cutting in Information Technology: toward a Framework for Enhancing the Business Value of IT Seyed MohammadEagher Jafari Assistant Professor Faculty of Management and Accounting, Farabi Campus University of Tehran (Received: 29 October 2012; Revised: 21 May 2013; Accepted: 28 May 2013) Abstract The increasing dependency of many businesses with information technology (IT) and the high percentage of the IT investment in all invested capital in business environment ask for more attention to this important driver of business.
The purchase of Information Technology (IT) and development of an IS are seen as a source of increasing cost and concern of management (Heo & Han, 2003; Legris et al.
There is a widespread recognition in the literature on the role of IT as a means for cost-cutting in business (Kauffman & Kriebel 1988; Mukhopadhyay et al.
The alignment of the IT with the strategic objectives of the company increases when senior management takes an active role in the decisions about the IT (Kearns & Sabherwal, 2006).
The literature review revealed that the strategic role of IT in organizations, IT costs structure, firm’s IT structure, senior management support and organizational learning is the important factors that affect the cost- cutting techniques selection in IT.
The literature review revealed that the strategic role of IT in organizations, IT costs structure, firm’s IT structure, senior management support and organizational learning is the important factors that affect the cost- cutting techniques selection in IT.