information economics metrics - strassmann · •corporate information economics offers methods for...
TRANSCRIPT
![Page 1: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/1.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 1
Information Economics MetricsInformation Economics Metrics
Prof. Paul A. StrassmannGeorge Mason University, March 20, 2007
![Page 2: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/2.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 2
Information Technology and Profits
![Page 3: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/3.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 3
No Correlation Between I.T. and Profitability
![Page 4: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/4.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 4
Information Technology and Profits in Banking
![Page 5: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/5.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 5
I.T. and Salaries are Unrelated in Banking
![Page 6: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/6.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 6
I.T. Accounts for a Large Share of Salaries in Banking
![Page 7: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/7.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 7
Comparison of I.T. Ratios and Performance for Banks
![Page 8: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/8.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 8
Information Technology Spending
![Page 9: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/9.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 9
Wide Range of I.T. Spending
![Page 10: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/10.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 10
Benchmarking I.T. Costs
Benchm a r k I .T . Spending = Con sta nt + Va ria b leA * SG&A +
+Va ri ab leB * Num ber o f P er sonal C om puters +
+Va ri ab l e C * Numb e r o f Profe ssiona l E m p loy e es +
+Va ri ab l eD * Num ber of Of fic e C leri c al Em ployees +
-Va ri a ble E * Num ber of E x ecutiv e a nd M anageri al Em ployees +
+Va ri ab l e F * Prof i t af ter T axes
![Page 11: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/11.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 11
Calculating Over- and Under-Spending on I.T.
![Page 12: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/12.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 12
Information Productivity ®
® Information Productivity is a Registered Trademark of Strassmann, Inc.
![Page 13: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/13.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 13
Transaction Costs and Profits are Unrelated
![Page 14: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/14.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 14
Distribution of Information Productivity is Symmetric
![Page 15: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/15.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 15
Calculation of Information Productivity
![Page 16: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/16.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 16
Outsourcing
![Page 17: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/17.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 17
Distribution of Corporate Costs
![Page 18: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/18.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 18
Purchases Is a Significant Cost Component
![Page 19: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/19.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 19
Higher Compensation Does Not Call for More Outsourcing
![Page 20: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/20.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 20
Cascading of Outsourcing Through the Value-Chain
![Page 21: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/21.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 21
Significance of International Outsourcing
![Page 22: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/22.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 22
Method for Calculating the Outsourcing Ratio
![Page 23: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/23.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 23
Knowledge Capital ®
® Knowledge Capital is a Registered Trademark of Strassmann, Inc.
![Page 24: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/24.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 24
Knowledge Valuation and Shareholder Equity for 5,913 Firms (2005)
Total Valuation $24.5 Trillion
$14.4 Trillion
$10.1 Trillion
![Page 25: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/25.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 25
Knowledge Value per Employee
![Page 26: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/26.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 26
Knowledge Value, Compensation and Net Worth of Employees
![Page 27: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/27.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 27
Most of Profits Derived from Knowledge Assets
![Page 28: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/28.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 28
Sector Distribution of Knowledge Capital/Employee
![Page 29: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/29.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 29
Concept of Knowledge Conversion Efficiency - Abbott Laboratories
![Page 30: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/30.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 30
Calculating the Worth of an Employee
![Page 31: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/31.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 31
Social Issues
![Page 32: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/32.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 32
Employment is Shifting to Females
![Page 33: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/33.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 33
Increased Importance of Females in Information Occupations
![Page 34: Information Economics Metrics - Strassmann · •Corporate information economics offers methods for assessing the contributions of I.T. and of Transaction Costs. •Corporate information](https://reader035.vdocument.in/reader035/viewer/2022071217/604b03efcf084a38d17a5a19/html5/thumbnails/34.jpg)
Prof. Strassmann, IEEE Lecture, March 20, 2007 34
Summary
• Corporate information economics offers methodsfor assessing the contributions of I.T. and ofTransaction Costs.
• Corporate information economics offers anapproach to budgeting of I.T. and in the planningfor information resources.