Dynamic investment and implementation of information technology to improve production performance in services

This paper introduces a formal dynamic model of a worker information-technology system. The model characterizes an operating interface between workers and information technology that exists in service environments or office environments within manufacturing organizations. A primary focus of this research is analysis of performance during the implementation process. Furthermore, we examine the manner in which management policy during the implementation process impacts on the long-term performance level realized. The research addresses analysis of the management decisions concerning investment in technology upgrades, investment in work force training, and the timing of the information technology upgrade.