Value at your fingertips: Converting a decision support system's knowledge into business value

The productivity paradox of investments in information technology has been the subject of debate for some time. The discussions surrounding the outcomes of technology investments do not provide a clear answer to the potential paradox, but they do demonstrate the difficulties of evaluating the returns on information technology investments. Even though the literature provides some high level assessments of potential causes of investment failures there is little guidance on how to ensure the achievement of the benefits of a new system. This is especially true for decision support systems.; This dissertation explores the process of converting information technology investments into business value in the context of the design, development, implementation, installation and use of a forecasting system to support stock reorders in a medium-size retail business. It describes the value conversion process and contribution and examines the potential causal explanations of the results obtained. The theoretical explanations are taken from an array of literatures including decision support systems, individual learning, organizational learning, incentive systems, and value accrual economics. They formed the basis for a theoretical framework used to collect data for analysis.; The project followed a longitudinal and embedded multiple-case design with each subject (wholesale buyers) constituting one case. The units of analysis involved were the factors that influence the individuals' perceptions of value and the relative importance of these factors; the buyers' decision-making processes and use of the system; the productivity gains generated; the buyers' learning processes; and the related incentive systems. The subjects comprised the company's wholesale buyers and their managers. Data collection relied on multiple sources including interviews, archival records and databases, direct-observation, and participant-observation.; Data analysis followed an explanation building approach, starting from a set of conceptual propositions and revising them in lieu of the research findings and cross-case analysis. The findings suggest that when individuals work under time constraints, the lack of objective (organizational) incentives to promote the changes required for improving process effectiveness is the most relevant factor in limiting the potential contributions; but not in improving process efficiency. This implies a possible trend of diminishing returns for investments in decision support systems.