Rentabilitätsanalyse von Investitionen

Heister, Matthias

doi:10.1007/978-3-663-02894-9

Cited by 34 publications

(2 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…2.1 The generic VoFI concept: an alternative to traditional capital budgeting methods The VoFI method was originally introduced by Heister (1962) and developed by Grob (1989) as an alternative to traditional appraisal methods such as the NPV, PP and IRR. Despite its various advantages over traditional appraisal methods, the VoFI method is still widely unknown outside German-speaking communities.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…The VoFI method was introduced by Heister (1962) and developed by Grob (1989) as an alternative to traditional appraisal methods, but only a few researchers have adopted the method in its generic tabular form to assess the economic value of IT and IS (vom Brocke and Lindner, 2004;Götze et al, 2008;Jede and Teuteberg, 2016). The reason for this limited acceptance of the VoFI approach may lie in its higher grade of complexity as compared with traditional capital budgeting methods because of the multitude of computations required for calculating the target measures.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Integrating system dynamics and VoFI for the dynamic visualization of financial implications arising from IT and IS investments

Oesterreich

Teuteberg

2019

JM2

View full text Add to dashboard Cite

Purpose Despite the advantages that the VoFI approach offers compared with traditional capital budgeting methods, its application for the appraisal of information technology (IT) and information systems (IS) investments in both research and practice is not widespread to date. Given the static nature of the generic VoFI table, the method reaches its limits in its financial plan form because it is unable to investigate the dynamic behaviour of complex investment calculations. To date, there has been no attempt to address these shortcomings to advance the use of VoFI as a useful and valid capital budgeting method in finance and accounting. Therefore, the purpose of this study is to address this research gap and aim at developing a ‘dynamic’ VoFI model that integrates all input variables and target measures of a VoFI table and visualises the causal relationships among these variables. Design/methodology/approach The ‘dynamic’ VoFI model is developed through System Dynamics (SD) modelling to enhance the strength of the VoFI concept as an instrument for visualising the financial implications of investments in IT and IS at the corporate level. Case study research is used as a research method to study the behaviour of the developed model. The validity of the model is demonstrated by conducting simulation runs in Vensim software. In addition, probabilistic sensitivity analyses are performed to account for the impact of uncertainty on the main model variables. Findings The results demonstrate the usefulness of SD modelling for extending the generic VoFI concept by integrating risk analyses and providing a new strategy of data analysis and data presentation different from the typical financial plan form. Furthermore, the dynamic VoFI model enables the visualisation of interdependencies among the various variables incorporated in the VoFI financial plan, which significantly enhances the conceptual understanding of the investment and its financial consequences. Originality/value The integration of the VoFI concept into an SD model helps researchers and practitioners to enhance their conceptual understanding of this method. This thus increases its acceptance and popularity as a practical capital budgeting method, especially for the financial assessment of IT and IS investments. The VoFI model proposed in this paper should also enable analysts and decision makers to become more conscious of the interdependencies between the assumptions made for an appraisal and the quantitative results.

show abstract

Section: Theoretical Backgroundmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%