Measuring input productivity gains from information technology: a case study of Positran at Hardee's Inc

An approach is presented to measuring the input productivity gains from information technology (IT) in complex managerial environments. The method is illustrated in the context of a case study of Hardee's Inc.'s pilot deployment of a new cash register and order coordination system called Positran. One of the features of the approach is a generalized cost function incorporating random input inefficiency as input to the DEA model. The random inefficiency results of the model are then used for hypothesis testing. The results of the case study show that Positran helped to reduce input materials costs, since restaurants which deployed the technology were less likely to be inefficient.<
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