The “productivity paradox”, which is considered a central issue to IST research, remains largely unresolved. The process by which IST contributes to the organization’s value generation remains unclear. In this paper, we propose a new framework, the IST Process-Value Model (P-VM), based on General System Theory to describe the IST value chain and thereby directly relating the IST process to the production of measurable business value. The P-VM resolves many of the limitations of existing theoretic models and can serve as a platform for further research into the mechanisms by which IST contributes to enhancing business performance.