The so called “productivity paradox” associated with information technology remains the focus of active research in infonnation systems. One explanation involves the dearth of useful measures to assess the value of IT investments. A review of the predominant approaches to such measurement reveals a number of serious weaknesses and fundamental limitations, The research described in this paper addresses these limitationsthroughacomplementarymethodologytennedvirtualprocesstmasurement(VPM). Through VPM, assessments of IT value are determined through the measurement of computer-based process representations (i.e., virtually), as opposed to measuring their real counterparts in ongoing organizations; this approach affords a number of advantages that are unattainable through extant techniques. In this paper, the VPM methodology is discussed in considerable detail, and examples from industry practice are used to demonstrate the use and utility of this approach. The paper closes with a set of conclusions and some possible directions for continued research.