Parallel Construction of Information Technology Value Model: Design-Science Research Methodology

Abstract

To date, the study model of IT value usually takes the form of a serial construction relating its components. This paper tries to offer a parallel construction in modeling the IT value study. The applied methodology is the design-science research approach to create the construction relating its components. To perfect the construct, the paper applies the partial adjustment valuation that functions as an estimating technique to approximate and evaluate the mathematical magnitude of the performing returns of a component compared to the real figures. The developed pattern undertakes a case study with Mandiri’s data, an Indonesian state-owned banking industry, shows that the estimated revenue of the parallel configuration has a deviation of only 0.28% when compared with the bank’s real revenue during the period 2004-2014. Thus, the parallel configuration may appear as the alternative configuration in the study of IT value as a result of its authenticity academically as well as pragmatically.