Analyzing the Cost-Effectiveness of Corporate IT Investments

Antoine Chaya earned a PhD in information technology (IT) management from the Georgia Institute of Technology (GT). During his studies, Antoine Chaya collaborated with GT professor Sabyasachi Mitra to publish a paper on analyzing the cost-effectiveness of corporate IT investments in 1996. Their study assessed the IT budgets of more than 400 large and medium-sized businesses in the United States.

The study showed that since the 1970s corporate IT investments had increased dramatically. However, it was difficult to quantify the benefits derived from these IT investments. In fact, some research showed a drop in productivity for information workers as companies ramped up their IT investments. Nonetheless, the 1996 GT study found that higher IT investments correlated to lower average production costs as well as total costs. In addition, the GT study determined that large companies typically spend more on IT as a percentage of revenues when compared to smaller firms.

IT continues to be a major area of investment for businesses of all sizes today. A recent survey of IT executives found that more than 40 percent of those surveyed expected their budgets to grow in 2015.

Early Research on Link between IT Investment and Financial Performance

Antoine Chaya leverages his extensive expertise in information technology to serve as the senior director of strategic accounts for Oracle Corporation in Redwood Shores, California. While working on his PhD at the Georgia Institute of Technology, Antoine Chaya co-authored a paper for the 29th Hawaii International Conference on System Sciences, which was titled Exploring the Relationships between IT Investments and Organizational Performance: Preliminary Empirical Evidence.

As noted in the paper’s abstract, businesses invested nearly a trillion dollars, or 50 percent of capital expenditures, into their IT capabilities during the 1980s. Firms made these outlays despite the fact that there were no data quantifying the return on investment (ROI) for doing so. The researchers attempted to determine whether there was a connection between a company’s information technology (IT) expenditures and its financial performance.

The study evaluated five years of financial and IT data from more than 600 large and mid-sized U.S. businesses. The researchers determined that greater IT investments were linked with lower average total costs and production costs, but higher average overhead expenses. Additionally, the authors concluded there was generally a delay between IT-related spending and ROI. A subsequent publication on the topic by Antoine Chaya and his co-investigator found that larger corporations typically allocate a greater percentage of their revenue to IT than smaller companies.

Oracle Corporate Giving: The Raspberry Pi Foundation

Antoine Chaya is a senior manager with an extensive background in information technology and team-building. Since 2006, Antoine Chaya has been a senior director of strategic accounts at Oracle in Redwood Shores, California.

As a worldwide leader in information technology applications, Oracle strives to ensure that children have the technological resources to excel in the computer sciences. To that end, Oracle has been a proud sponsor of the Raspberry Pi Foundation since 2014, providing children with low-cost pocket-sized computers to develop programming skills. Since entering production in 2011, the Raspberry Pi computer has since become one of the fastest-selling personal computers in the United Kingdom, offering a versatile and powerful platform for computer education at an affordable price point starting at $25.

Itself an example of the creative potential of computer technology, the Raspberry Pi computer has given rise to countless innovative applications both inside and outside the classroom. Most notably, the Raspberry Pi community came together this past Pi Day on March 14 to construct various devices, including a portable gaming system for online emulators, a makeshift cellphone, a high-tech mirror with local headlines and weather displays, and even a semi-autonomous quad-copter.

Georgia Tech’s 2015 InVenture Competition Winners

Antoine Chaya is a Silicon Valley-based executive with over a decade of experience in information-technology management. In preparation for his career with Oracle, Antoine Chaya completed his graduate and doctoral degrees at the Georgia Institute of Technology.

As home to several of the top-ranked MBA programs in the nation, the Georgia Tech Scheller College of Business encourages innovation through a number of unique programs, not the least of which is the largest undergraduate invention contest in the nation. Since its inception in 2009, the annual InVenture Prize Competition has been a major platform for student inventors from all backgrounds, providing them with cash prizes and access to Georgia Tech’s Flashpoint startup engineering program.

For 2015, the first-place prize of $20,000 went to the makers of FlameTech Grill Defender, a safety device designed to alert operators when gas levels reach an unsafe threshold. The second-place prize of $10,000 went to Oculostaple, a medical device to improve treatment outcomes for drooping eyelids, and the People’s Choice Award of $5,000 was won by Haplit, an interactive learning device designed around the Braille writing system.