An assessment of business value of information technology in Literature review

An assessment of business value of information technology in organisations - Literature review Example There are more reasons to justify why it is essential to invest on Information technology, although other fail view Information Technology as a business venture that can pay off after some time (Carlos and Macada, 2012). This discussion will look at the relevant theories and models on IT business values, different views on Information Technology business value and effectiveness and efficiency of information systems to support decision making. In order to understand the effectiveness and efficiency of information systems on decision making a lot of factors must be put into consideration. Using of technical efficiency as a performance criterion when application of individual analytical occurs. Information technology contributions in different countries differ in magnitude from a production point of view due to increase and decrease of the countries technical efficiency. Spending on Information technology will not improve countries technical efficiency. Whether a country is developing o r not, is not a subject to look at in order for it to improve its technical efficiency in the field of information technology. Relevant use of theories and models and good decision makes it possible for a country to have an efficient and effective Information technology. ... Defining the substance of technology, how it changes its relation towards human practices or social structure, and how it emerges are addressed by Descriptive theories. The descriptive theories view that how much force it has in determining human practices or social structure, and how much it addresses the extent in which technology is autonomous substantively. Social construction of technology in connection to descriptive approach states that, technology does not necessarily determine human action; on the contrary it is the human actions that shape technology. Actor-network theory is also necessary theory in business IT. This theory addresses a heterogeneous network of non-humans and humans as similar interrelating actors. Technology acceptance model (TAM) is a well known model that relates to Information technology use and acceptance. This model was originally proposed by Davis in 1986. This theoretical model has continuously proven to be of great help because it predicts and expla ins user behavior of information technology. This model is also considered to be an influential extension of theory of reasoned action (TRA) (Heijden, 2000). Its mandate was to explain why a user rejects or accepts information technology by adapting theory of reasoned action. By the use of technology acceptance model one can menage to get the basis to trace how external forces influence attitude, belief, and intentions to use. There are two cognitive beliefs that are associated with technology acceptance model. These are perceived ease to use and perceived usefulness. According to technology acceptance model, one use of a technology system is manipulated either directly or indirectly by the user’s attitude, behavioral