Measuring Information Technology Investment Payoff

In an era when IT budgets are being cut as indiscriminately as they were once increased, this book offers the first systematic guide to measuring the true impact of IT spending--and making rational decisions about which projects to fund.

It would seem that business investment in information technology (IT) is at root no different from business investment in anything else. After a careful consideration of the costs of the investment and its anticipated benefits, a decision is made as to whether the benefits of the investment outstrip the costs and by how much. If the benefits are competitive with other investment alternatives (say, a major marketing campaign), then the business will commit financial resources to the IT proposal. Otherwise it won't. This decision making process is at the heart of capital budgeting. Senior executives have been making IT investment decisions for well over three decades. So why is the measurement of IT investment payoff so difficult and controversial? Why do we need a book dealing with contemporary approaches to measuring IT investment payoff? Why have earlier approaches to measuring IT investment payoff proven unsatisfactory? In what respects have earlier approaches fallen short? Do we need to scrap earlier approaches entirely or can we find important improvements to these approaches such that they can be newly applied to effectively measure IT investment payoff in ways that are convincing to senior management? This book will help you to find improvements in existing methods for measuring IT investment payoff as well as to find new, innovative methods for addressing the value of emerging IT.0000 ø0.

Some of the most powerful tools in the hands of educators, researchers and managers are documented cases based on real-life experiences of others. This is particularly true for IT implementation and implications. Success and Pitfalls of Information Technology Management is a collection of actual, real-life cases dealing with a variety of issues in the overall utilization of IT in organizations.

IT Investment in Developing Countries: An Asse4ssment of Practical Guideline offers an assessmentof the effectiveness of IT investment in developing countries. It quantifies IT investment expenditures and the problem of measuring the intangible benefits of IT.

Software Process Improvement (SPI) efforts are being undertaken by organizations of all types and sizes as they attempt to deal with the challenges of quality, complexity and competitiveness. Software process improvement efforts rely on the successful integration of many technical, organizational and methodological issues. SPI has provided a rich field for both conceptual and practical research in industry and academia. Software Process Improvement: Concepts and Practices provides the opportunity for rich socio-technical and interdisciplinary studies in addition to those studies that primarily focus on process and/or enabling technology issues. This book addresses numerous aspects of SPI program development, implementation, trends, opportunities and future challenges in organizations.

From the individual to the largest organization, everyone today has to make investments in IT. Making a smart investment that will best satisfy all the necessary decision-making criteria requires careful and inclusive analysis. This textbook provides an up-to-date, in-depth understanding of the methodologies available to aid in this complex process of multi-criteria decision-making. It guides readers on the process of technology acquisition — what methods to use to make IT investment decisions, how to choose the technology and justify its selection, and how the decision will impact the organization. Unique to this textbook are both financial investment models and more complex decision-making models from the field of management science so that readers can extend the analysis benefits to enhance and confirm their IT investment choices. The wide range of methodologies featured in the book gives readers the opportunity to customize their best-fit solutions for their unique IT decision situation. This textbook is especially ideal for educators and students involved in programs dealing with technology management, operations management, applied finance, operations research, and industrial engineering. A complimentary copy of the ‘Instructor's Manual and Test Bank’ and the PowerPoint presentations of the text materials are available for all instructors who adopt this book as a course text. Please send your request to [email protected]. Errata(s) Errata (47 KB)

From the individual to the largest organization, everyone today has to make investments in information technology. Making a good investment that will best satisfy all the necessary decision criteria requires a careful and inclusive analysis. "Information Technology Investment: Decision-Making Methodology is a textbook that will provide the understanding of methodologies available to aid in this area of complex, multi-criterion decision-making. It presents a detailed, step-by-step set of procedures and methodologies that readers can use immediately to improve their IT investment decision-making. Unique to this textbook are both financial investment models and more complex decision-making models from management science, so users can extend the analysis benefits to confirm and enhance the ideal IT investment choices.

"Addressing questions raised by managers and researchers over the last decade on the business value of information technology (IT), this book provides business professionals with a more precise rationale for making IT investments by detailing how computerization does not automatically create business value, but is one essential component that should be coupled with organizational changes such as new strategies, new business processes, and new organizational structures."