Establishing the Value of Information Systems

Schell, George P.

doi:10.1287/inte.16.3.82

Cited by 15 publications

(5 citation statements)

References 1 publication

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For example, Willcocks (1992), suggests that `it is now widely accepted that certain measures do not assist the process of establishing how IT adds value to an organisation' (p. 107). Miller (1993) makes the point that conventional cost bene® t analysis is becoming less and less relevant for measuring IS/IT performance, while Schell (1986) argues that little guidance is given in determining intangible costs and bene® ts when using ® nancial techniques. Additionally, Bacon (1992) argues that the capital budgeting theory, on which CIAT are based, has a number of major limitations including the assumption that cash ¯ows and discount rates are known with certainty (see also Strassmann, 1997).…”

Section: Arguments Against Using Ciat To Appraise Is/it Investmentsmentioning

confidence: 99%

Financial appraisal and the IS/IT investment decision making process

Ballantine

Stray

1998

J Inf Technol

View full text Add to dashboard Cite

This paper explores the techniques used by organizations to appraise Information Systems (IS)/Information Technology (IT) investments, and concentrates, in particular, on techniques of capital investment appraisal. We draw on relevant studies reported in both the accounting and ® nance, and the IS literature, which have addressed their usage. Where possible comparisons are drawn between both sets of literatures. The results of a survey that speci® cally examined IS/IT investment appraisal practices of a sample of UK companies is also presented. Among the issues discussed include the extent to which capital investment appraisal techniques are used to appraisal investments, the importance of the techniques used and the problems attendant on the decision making process.

show abstract

Section: Arguments Against Using Ciat To Appraise Is/it Investmentsmentioning

confidence: 99%

Financial appraisal and the IS/IT investment decision making process

Ballantine

Stray

1998

J Inf Technol

View full text Add to dashboard Cite

show abstract

“…Evaluating EDI (Kaplan, 1984;Small & Chen, 1995) Not recommended Purely financial methods (Kaplan, 1984;Schell, 1986;Byrd & Marschall, 1997)…”

Section: Methodologies Formentioning

confidence: 99%

“…Simulation method (Hoogeweegen, Streng & Wegennar, 1998) Strategically qualitative method (Small & Chen, 1995;Ramesh &Jaykumar, 1993) a strong consensus that discounted cash flow is adequate, provided that all tangible and intangible benefits related to the introduction of the information system are properly accounted for (Kaplan, 1984;Schell, 1986). However, more detailed analysis of those benefits and translation of the benefits in terms of cash flow are needed.…”

Section: Financial + Strategic Consideration Methodsmentioning

confidence: 99%

Methodologies for Evaluating Investment in Electronic Data Interchange

Truong

2005

International Journal of Enterprise Information Systems

View full text Add to dashboard Cite

Reluctance of organizations to invest in electronic data interchange (EDI, Internet-based EDI, and XML/EDI) is largely due to their inability to assess the return on these investments. We identify prescriptive and evaluative methodologies for analyzing investment in EDI: non-financial methods, purely financial methods, and financial and strategic consideration methods. We also show how computer simulation can be used as a tool for assessing EDI. Evaluating the benefits resulting from EDI implementation was illustrated through the well-known Beer Game. Our analysis and review also identifies difficulties involved in assessing the benefits of EDI in supply chains.

show abstract

“…Other techniques have also been prescribed. Decision analysis has been suggested as an objective method to establish the value of IS via expected pay-offs (Schell, 1986). An approach using a`total factor productivity' incorporates the analysis of activities necessary to the functioning of an organization by examining the effect of IT on productivity (Oman & Ayers, 1988).…”

Section: Prescriptive Studiesmentioning

confidence: 99%

Process and reality in information systems benefit analysis

Changchit

Joshi

Lederer

1998

Information Systems Journal

View full text Add to dashboard Cite

The identification of the potential benefits of a proposed information system project is a very challenging and important task. However, little research describes how this is actually carried out. The objective of this research was to answer the core question: how do organizations identify the expected benefits of proposed IS projects? To accomplish this objective, the authors studied 24 projects by interviewing 20 subjects from 13 organizations. Based on these interviews, a model of the benefit identification process was formulated showing it to be a set of loosely defined, overlapping, iterative activities. The study suggests that, despite great uncertainty about the potential benefits, proposers were compelled to use the benefit identification process to persuade the organization to be committed to the project. This effort to build commitment under great uncertainty may contribute to the overstatement or understatement of expected benefits. The study offers managers an understanding of the process and guidance for carrying it out. It also suggests that future researchers validate the model, use it to help identify best practices and test related hypotheses.

show abstract

Establishing the Value of Information Systems

Cited by 15 publications

References 1 publication

Financial appraisal and the IS/IT investment decision making process

Financial appraisal and the IS/IT investment decision making process

Methodologies for Evaluating Investment in Electronic Data Interchange

Process and reality in information systems benefit analysis

Contact Info

Product

Resources

About