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Part - V

Where to invest?

Having understood the affect of IT investments on organizations, it is now essential to look at another issue faced by business executives - which part of the organization to invest IT in? In a world of scarce IT resources, it is vital to know where - and where not - to target resources more intensively. Organizations should only invest in those areas where there is a potential to create a significant competitive advantage.

A recent McKinsey Quarterly article approaches this issue by defining productivity levers - those that have the potential to improve productivity. Each lever is distinct but yet broad to encompass a range of potential opportunities.

Operational Levers (Diana Farrell, Terra T. and Allen P. Webb, 2002)

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* Contributed by -
Mrugendra Shintre,
Manoj Kumar Gaddam,
II Year,
IIM Lucknow.