A Post Implementation Evaluation Method of IT Investments

Based on the theory of performance frontier in operation management and the production functions in econometrics, this paper proposes a new post implementation evaluation method of information technology investments, and undertakes an empirical study with the objective of testing the applicability of the method. The principle underlining the method is that IT investments alone are infrastructural input factors of production process rather than structural input factors, and thus can only change the operating frontier of production process, while leaving the asset frontier of production process unchanged. The result indicates that the method proposed is useful for measuring the impact of IT investments on organizational performance in the form of improving the technical efficiency of a firm´s production process