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Does IT Payoff? Strategies of Two Banking Giants  
Product Ref: 07/366C Company: Citigroup

Product Type: Case Industry: Banks & Diversified Financials

Related Product(s): Teaching Note
The IT productivity paradox debate has been going on for more than two decades, but the controversy has been exacerbated by a 2003 Harvard Business Review article by Nicolas Carr, who argues that IT doesn・t matter. This case sheds light on the major drivers of IT investment: those investments targeted at improving operational efficiencies and those focused on entrenching a firm・s strategic position. It does this by looking at the IT investment strategies of two of the world・s largest financial institutions, HSBC and Citigroup. Of particular interest are how HSBC and Citigroup spend on IT projects, what drives their investments and the viability of measuring the efficacy of their investments in terms of improving operational efficiency or strategic position. By comparing the IT investments strategies of both banks, students will learn about the IT valuation process, the role of IT as a strategic necessity and IT・s potential role in sustaining a firm・s competitive advantage.

Nominee for best paper award, International Conference on Information Systems (ICIS2007)
Functional Area : Management of Information Systems

Issues: This case provides students with a basic understanding of different classes of IT investment and sharpens their understanding of the strategic role of IT as a significant economic and productivity driver. Students will learn how companies can leverage IT investment both operationally and strategically, and the difficulties involved in assessing the payoffs.
Length: Text: 6 pages
Exhibits: 9 pages
Country: Worldwide

Pub. Year: 2007 Level of Difficulty: 2
This product type is available in the following language(s):      English   Simplified Chinese
Related Information: IT productivity paradox, Citigroup, HSBC, Banking, IT payoff measurement
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Case (07/366C) HK$58 / US$7.5
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