The evolution of information technology (IT) in organizations is often portrayed as following three eras-Data Processing, Management Information Systems, and Strategic Information Systems (SIS)-each displaying distinct characteristics regarding the application of IT and having different objectives. While investments in IT continue to made for both efficiency and effectiveness purposes, the SIS era is premised on management proactively seeking out opportunities for competitive advantage through IT, with approaches to information systems (IS) strategy formulation accommodating the requirement for both alignment of IS/IT investments with corporate strategy and assessing the disruptive impact of technology and the options for its use in shaping business strategy. Frameworks, methodologies and tools have been developed to support the objectives of the SIS era, yet the mechanisms through which organizations achieve repeated and sustained value from IT has received scant attention. Drawing on resource-based theory, this paper proposes a perspective on the management of IT in organizations that specifically considers how organizations can continuously derive and leverage value through IT. The analysis moves beyond a focus on identifying 'strategic systems' and develops the concept of an IS capability, suggesting that it heralds the arrival of a new era. The paper presents a model of an IS capability, outlines its core components and illustrates its application. (C) 2004 Elsevier B.V. All rights reserved.
