From Measurement to Management: the Influence of IT on Service Operations

The state of service management practice and the developments in IT-efficiency research prompt the call for managerial relevance, normative theory building and the conceptualization and measurement of the impact of Information Technology (IT) on service efficiency. Drawing on theoretical insights from economic and behavioral literature, this article deduces a work system centered model of the service outlet and proposes a measurement methodology (ITIMPACT) geared towards the development of a business intelligence tool. The measurement follows a two-step methodology that first assesses compared-to-best efficiency, using Data Envelopment Analysis (DEA), and subsequently explains efficiency differences using a regression framework. An inter-disciplinary approach bases the first step on econometric logic, while the second takes its foundation in behavioral sciences, and information system research.