"To date, most research on information technology outsourcing concludes that firms decide to outsource IT services because they believe that outside vendors possess production cost advantages. Yet it is not clear whether vendors can provide production"

“Organizations that operate under an IT monarchy place key business unit and technical decisions in the hands of the CIO. Under the duopoly method, decision-making for IT budgets, applications and technologies is shared among the CIO and business unit leaders.”

“IT architecture is often assumed to follow business strategy, to align IT with the business's strategic objectives. Increasingly, though, many business strategies depend on specific underlying IT capabilities. To develop a synergy between business strategy and IT architecture, firms must develop organizational competencies in IT architecture. My research has identified four IT architectural stages, each with its own requisite competencies. The "application silo architecture stage" consists of IT architectures of individual applications. The "standardized technology architecture stage" has an enterprise-wide IT architecture that provides efficiencies through technology standardization. The "rationalized data architecture stage" extends the enterprise-wide IT standards to data and processes. And the "modular architecture stage" builds onto enterprise-wide global standards with loosely coupled IT components to preserve the global standards while enabling local differences. Each stage demands different organizational competencies to implement the architecture and prepare the firm to move to the next stage.”

“The insights in the book come from a series of research projects exploring enterprise architecture in more than 200 companies where our focus was on IT government from 1995 to 2005.”

“software packages have become popular means for both large and medium-sized organizations to overcome the limitations of fragmented and incompatible legacy systems. ERP systems are designed as integrated sets of software modules linked to a common database, handling basic corporate functions such as finance, human resources, materials management, sales, and distribution. Most ERP packages also provide multiple language and currency capabilities, enabling integration of global operations. The popularity of ERP is documented in a study that showed that nearly 19 percent of organizations across all industry sectors have installed ERP software, with the manufacturing sector leading the trend. The study also showed that ERP's popularity continues to rise, with 34 percent of the surveyed organizations investigating, piloting, or implementing ERP packages. Davenport characterized ERP as "the most important development in the corporate use of information technology in the 1990s”

“Seventy percent of all IT projects fail—and scores of books have attempted to help firms measure and manage IT systems and processes better in order to turn this figure around.”

“Assessing the value of information technology has never been easy. Delayed benefits, unintended uses, business changes, and hidden support costs inhibit meaningful evaluation of individual IT investments. This was true when most investments were focused on the support of a single business process or functional area. It is even more true as business executives ponder implementations of shared technologies like data warehouses and networks, replacement of large legacy systems, and reskilling of the IT staff. Although firms introduce some systems to reduce costs and can evaluate them in terms of their success in doing so, they want many IT initiatives to support a firm's objectives. The value of these initiatives rest in their contributions to a firm's competitiveness, which is often non quantifiable and uncertain.”