IT Investment

Abstract— This Paper proposes a theoretical framework to evaluate IT Investments based on Composite IT Balanced Scorecard (IT BSC) which takes into consideration Behavioral Dimension represented by Unified Theory of Acceptance and Use of Technology (UTAUT). Clearly, the proposed framework extends the IT BSC to account for technology acceptance as a behavioral dimension along with other dimensions of IT BSC. Furthermore, UTAUT is updated with relevant variables and beliefs that are not considered by the theory, rather than inclusion of emerging trends proposed by other models and theories and subsequent studies (e.g. proposed framework take Attitude into consideration as a multi-dimension construct).
Contributions of this paper are not limited to theory development, it is extended to practice as well. Not only does the study examine the extent that decision makers account for Technology Acceptance in IT investment decisions in Egypt, but also it explores the extent that users accept IT based information systems in Egypt.
Results are in general so far consistent with what is proposed by theory and literature in the field. However, with regard to IT investment decisions in Egypt, results reflect lack of awareness of decision makers of Technology Acceptance in such decisions contexts.

Organizations expenditure on Information technology (IT) related investments continue to rise in the face of the fierce competition in the various marketplaces. Nevertheless, the problem of evaluating such investments remains a challenge to managers due to the inability of the evaluation techniques to accommodate the indirect costs associated with IT investments. This negatively affects the accuracy of the justification process

This paper discusses the IT productivity paradox in the banking sector (US banking in particular) and the fundamental justifications for the continuing and expanding IT investment in the banking industry. Given the dramatic increase in IT investment in the banking industry despite the inconclusive evidence of IT productivity gains, this study explains why heavy investment in IT continues amidst conflicting evidence of positive returns. A set of three exogenous forces:(1) technological turbulence,(2) market turbulence, and (3) regulatory ...

In this paper the authors propose a link between the Benefits Dependency Network, from a Benefits Management approach, and a Strategy Map, from Balanced Scorecard, to improve the management of business benefits and to ensure that actions taken along the investment life-cycle lead to foreseen benefits realization. The goal of this integration is to build a framework that combines useful features of both methods. We sustain that they can be complementary. As a Strategy Map is committed with strategic alignment, communication and monitoring of strategy execution at all levels of an organization, a Benefits Dependency Network is aimed at explaining how benefits are going to be obtained through organizational change. Using the results of a case-study research, we explain how a Strategy Map can cross with the Benefits Dependency Network. The integrated contribution is meant to increase the investments effectiveness, giving to stakeholders the confidence on a clearer delivery path for their expected benefits.

Recently there have been many attempts to understand and measure the returns from information technology (IT) investments in public sector. Initially, most of the methodologies and models were based on traditional financial models. However, assessing the returns on government investments in IT poses important practical and research challenges. Scholars and practitioners that have embarked in IT assessment activities have encountered numerous difficulties which, to a large extent, remain as pending issues. Some examples include the intangibility of the benefits generated, the time at which benefits can be measured, and the cross-sectional nature of information technologies.

The primary purpose of this paper is to conduct a comparative analysis and describe the similarities and differences of different approaches, models and methodologies developed for evaluating ROI in public sector. Thus, the paper will be informed by an extensive review of the fragmented research and analyses of IT evaluation and different elements of IT evaluation in public sector.

The electricity supply industry is highly capital-intensive, whose success depends critically upon the management of its investment. In most developing countries investment is poorly managed, poorly maintained, and often inadequate. Inadequate regulation or political control lead to low prices that undermine the finance of investment and give poor incentives for management and operation. The paper argues that regulation must be

While researchers have encouraged further examination on the causal links between Information Technology (IT) investments and a firm’s performance, results of empirical studies have been varied. This is to a certain extent due to the exclusion of IT-business partnership (also known as IT-business
strategic alignment). Indeed, strategic alignment has emerged as one of the most important concern facing business and IT executives all over the world (Raymond and Croteau, 2009, Johnson and Lederer, 2010). Therefore, the purpose of this paper is to provide a detailed literature review that both academics and practitioners can use in order to understand the resources required to realize the potential values of their
IT investments. This is achieved by providing a review of the IT and IT-business literature on a firm’s business performance. It is hoped that the article will spark helpful discussion on the merits of continuous examination of IT investments.

We are living in a period of enormous technological transformations and the organizations face new opportunities that the systems and information technology (IS/IT) implementations provide with the hope that these investments will help to increase productivity and business prosperity, meanwhile, several studies performed in public and private sectors have proven that the investments done in IS/IT have not brought the expected benefits. Some authors argue that the result of the studies that related investments in IS/IT and the increasing performance of the organizations in the last thirty years were far from true. In this paper the authors propose a link between the Benefits Dependency Network, from a Benefits Management approach, and a Strategy Map, from Balanced Scorecard, to improve the management of business benefits and to ensure that actions taken along the investment life-cycle lead to foreseen benefits realization. The goal of this integration is to build a framework that combines useful features of both methods. We sustain that they can be complementary. As a Strategy Map is committed with strategic alignment, communication and monitoring of strategy execution at all levels of an organization, a Benefits Dependency Network is aimed at explaining how benefits are going to be obtained through organizational change. Using the results of a case-study research, we explain how a Strategy Map can cross with the Benefits Dependency Network. The integrated contribution is meant to increase the investments effectiveness, giving to stakeholders the confidence on a clearer delivery path for their expected benefits.

This paper focuses on the comparison of corporate social responsibility in mining industry. It compares specific territorial areas of two different countries – one of them country that could be called as semi-periphery or even core country and the second one a periphery country. The first one is Czech Republic (Northern Bohemia area) and the second one is Zambia (Copperbelt area). CSR activities in Copperbelt have played primarily an ameliorative role in the context of significant social disruption and uncertainty in the wake of privatization. Some experts say there are still important gaps between mining companies’ CSR activities, on the one hand, and accountability and fairness, on the other. The CSR concept is relatively new in the Czech Republic – but more and more discussed and interesting for many firms. The Czech company “Severočeské doly” was one of the finalists of the national round of the competition “The European Corporate (Social) Responsibility Award” in 2007. The aim ...

Strategic alignment is a topic which has received considerable attention over the last decades. There are many reasons why organisations have performed strategic alignment, but perhaps the most critical one is that it can help them improve performance and competitive advantage in the organisations when properly applied. Managers should be capable of interpreting the external business environment in order to capitalise the opportunities, and deal with threats. The Balanced Scorecard approach (BSC) recognises the rise of intangible assets in value creation strategies and the limitations of traditional financial measurements for this type of assets. Balanced Scorecard translates an organisation’s mission and strategy into a comprehensive set of performance measures by providing a framework for the strategic alignment between an organisation’s strategy and its business units. BSC uses a balanced mix of financial and non-financial measures to evaluate performance through four perspectives, based on a cause-and-effect logic. This paper highlights the importance of adopting this type of frameworks in line with the organisation’s strategic alignment and its focus on implementing its mission and strategic objectives at all organisation levels.

An important element of IT governance is the provision of robust IT capability. The concept of process capability maturity provides a useful methodology for the measurement and analysis of the state of IT capability. The COBIT IT Governance framework provides both a measurement methodology and IT process structure that provides a foundation for the measurement of process capability maturity across the lifecycle of IT investment. This study reports the results of a large-scale field study of process maturity in 51 organizations in eight developed and developing countries.

Many organizations today need to deliver more complex products and services in a better, faster, and cheaper way. The business problems that some companies address require enterprise-wide solutions that call for an integrated approach and an effective management of organizational resources to achieve business objectives with an acceptable level of risk. A maturity model is a process improvement approach that provides organizations with the essential elements of effective change. It can be used to guide process improvement across a project, a division, or an entire organization. Maturity models help integrate traditionally separate organizational functions, set process improvement goals and priorities, provide guidance for quality processes, and provide benchmark for appraising current processes outcomes. The benefits management approach emerges as a complement to traditional management practices and proposes a continuous mapping of benefits, implementing and monitoring intermediate results. Benefits management reinforces the distinction between project results and business benefits. Based on a case study the authors show how a set of business objectives can be obtained from identifying, structuring and monitoring business benefits, supported by information technology enablers and organizational transformations, and as a result of a certain maturity level. The authors also state that the main focus of an investment success lies not only in technology implementation, but mainly in changes in organizational performance and business efficiency by means of improved processes and modifications in the way the work is done. We emphasize that the integration between a Maturity Model and a Benefits Management approach can increase the effectiveness of projects, programs or portfolios outcomes. Besides, this linkage can also improve decision-makers confidence that the investments done match the desired maturity stages and will then, with more probability, collect more value for businesses.

Normalmente, los métodos de medición del valor que las inversiones de sistemas de información y tecnologías de información tienen para el negocio, están orientados hacia las grandes empresas. Las pequeñas y medianas empresas muchas veces no tienen una metodología formal para hacer este tipo de evaluaciones. Sin embargo, no se puede descartar que existen procedimientos o métodos informales para hacerlo. Pero, ¿Qué tan complicado puede ser este proceso de medición de valor? ¿Cómo saber cuál es el beneficio claro de la inversión en SI/TI?  El MFCV (Método del Flujo Crítico de Valor) se nutre de la arquitectura empresarial porque una vez que identifica y define las relaciones entre los objetos de las diferentes dimensiones, procede a describir dichas relaciones de una forma que permite su cuantificación. Dado que el valor fluye a lo largo de estas relaciones, es necesario cuantificarlo para saber el impacto desde una inversión en TI hasta los indicadores de negocio de una organización. Una buena descripción de la arquitectura seguramente desembocará en una buena implementación física de la instancia deseada. Es decir, el resultado es la alineación entre lo deseado y lo construido.

We are living in a period of enormous technological transformations and the organisations face new opportunities that the IS/IT implementations provide with the hope that these investments will help to increase productivity and business prosperity, meanwhile, several studies performed in public and private sectors have proven that the investments done in IS/IT  have not brought the expected benefits.
As competition due to globalization increases – it is ever more important that an organisation performs to its best capabilities.
The increase of the interest in benefits realization has coincided with the increasing use and complexity of the IS/IT.
Some authors argue that the result of the studies that related investments in IS/IT and the increasing performance of the organisations in the last thirty years were far from true. However, others say that the amount spent in IS/IT and the business success has no direct connection.
One of the crucial aspects of the IS/IT investments management is that once all the investments costs are mapped, the identification of the potential benefits and the guarantee that these benefits will be achieved
The difficulties of the benefits identification, namely, the intangible benefits, which cause the traditional financial methods, not to work properly.  As a consequence, the organisations should implement correct benefit management methods.

This paper develops and tests a model to examine the effects of information technology (IT) in the US banking industry. It is believed that IT can improve bank’s performance in two ways: IT can reduce operational cost (cost effect), and facilitate transactions among customers within the same network (network effect). The empirical studies, however, have shown inconsistency on this hypothesis; some agree with the Solow Paradox, some are against. Since most empirical studies have adopted the production function approach, it is difficult to identify which effect has dominated, hence the reasons attributed have been the difference in econometric methodology and measurement. This paper attempts to explain the inconsistency by stressing the heterogeneity in banking services; in a differentiated model with network effects, we characterize the conditions to identify these two effects and the conditions for the two seemingly positive effects to turn negative in the equilibrium. The results a...

Enterprise Resource Planning (ERP) systems are among the largest information technology (IT) investments made by firms. Such systems are diffusing rapidly in the Nordic-Baltic region of Europe. While studies discuss the diffusion of ERP in the region, few studies discuss ...

E-business environments pose unique challenges to the measurement of information technology payoff. In this paper we discuss some of those challenges as stemming from issues such as the productivity paradox, level of measurement, choice of metrics and the process of measurement. Further, we discuss those characteristics that make investments in E-business environment different from other types of IT investment. In doing so, we draw upon the contribution of the papers in this special issue of Information Systems Frontiers and conclude with our proposal for areas where further research needs to be conducted.