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Seminar paper from the year 2009 in the subject Business economics - Information Management, grade: 2,0, University of Göttingen (INSTITUT FÜR WIRTSCHAFTSINFORMATIK), course: Informationsmanagement, language: English, abstract: This report aims to take a critical look at an article from Paolo Neirotti and EmilioPaolucci, both working at the Politecnio di Torino Technical University, Department ofBusiness and Production Engineering. The article surveys the strategic value of IT oncompanies, specifically those who are active in the insurance sector.Neirotti and Paolucci claim in their work that many IT projects fail, although companiestoday are aware of the pitfalls of IT investments and that many IT applications havebecome commodities. Obviously IT has a strategic value to firms but they have notdetermined how IT management capabilities and IT governance schemes explaincommonalities and differences in their use of IT (Neirotti & Paolucci, 2007, p. 568).They analyzed the insurance industry in the US and Europe through 20 case studies andalso made an analysis on 30 Italian firms (panel study).This report is going to throw light on the conclusions made in that article and evaluatethem from a new perspective.