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Using the learning curve to maximize IT productivity: a decision analysis model for timing software upgrades

journal contribution
posted on 2007-02-01, 00:00 authored by Ojelanki Ngwenyama, A Guergachi, T McLaren
Information technology managers often feel pressure from stakeholders to continually upgrade their firm's software as soon as the software vendor releases a new version. However, this may not be ideal as the software's life cycle and the organization's learning curves are not necessarily aligned. If the firm upgrades its software too early, it may not achieve productivity gains and may lose investments from prior upgrades. If it upgrades too late, it may miss gaining important productivity gains offered by the new version. We present an approach to timing software upgrades that will maximize organization productivity gains. We use the learning curve as the theoretical basis for our mathematical model.

History

Journal

International journal of production economics

Volume

105

Issue

2

Pagination

524 - 535

Publisher

Elsevier

Location

Amsterdam, The Netherlands

ISSN

0925-5273

Language

eng

Publication classification

C1.1 Refereed article in a scholarly journal

Copyright notice

2006, Elsevier