IT productivity paradox debate has been going on for more than two decades, but the argument was reinforced in 2003 Harvard Business Review article by Nicolas Carr, who argues that it does not matter. This case sheds light on the key factors of IT investments: the investments aimed at improving operational efficiency and those focused on entrenching the strategic position of the firm. It does this by looking at the IT investment strategies of the two largest financial institutions in the world, HSBC and Citigroup. Of particular interest are as HSBC and Citigroup are spending on IT projects that make their investments and the viability of measuring the effectiveness of their investment in terms of improving operational efficiency and strategic position. Comparing IT investment strategies of both banks, students will learn about the IT evaluation process, the role of IT as a strategic necessity, and a potential role in maintaining the competitive advantage of the firm. A candidate for the Best Paper Award, International Conference on Information Systems (ICIS2007) «Hide
by Ali Farhoomand, Minyi Huang Source: University of Hong Kong, 15 pages. Publication Date: December 21, 2007. Prod. #: HKU753-PDF-ENG
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