Digital systems and competitive responsiveness: The dynamics of IT business value
Authors: Dutta, Amitava; Lee, Hun; Yasai-Ardekani, Masoud
Journal: Information & Management (2014)
The mechanics of competition involves perception of and reaction to competitor moves. Both involve delays that can be reduced by digital systems. Using system dynamics and the Red Queen paradigm, we model the value of such IT investments and find that: (a) value has significant transient components; (b) value depends not only on investment level but also on establishes the importance of considering (a) the temporal pattern of benefits, not just the total magnitude and (b) the impact of ongoing moves by competitors, when assessing value of IT investments.