The characteristics of IT investment decisions and methods used in the US lodging industry

Abstract

Purpose -The purpose of this study is to examine and to compare the most utilized information technology (IT) investment decision methods between hotels with centrally managed IT, and hotels with locally managed IT. Design/methodology/approach -The empirical data were collected via a structured questionnaire from hotel managers in the USA. Findings -The key findings of the research are that evaluation activities for hospitality IT investments have not been performed widely and consistently. Although sophisticated evaluation methods have been developed over the years, they do not appear to have provided a satisfactory answer to improve IT decision-making practice. In this study, significant differences were found in how IT investments are evaluated in hotels with centrally managed IT as compared to hotels with locally managed IT. The hotels with centrally managed IT tend to use more financial and non-financial evaluation methods since all investments are expected to show a positive return on investment. Practical implications -The research findings highlight the importance of the use of IT investment evaluation techniques in hotels and the major differences between hotels with centrally and locally managed IT. Originality/value -The literature on IT investment evaluation methods in the lodging industry is limited. Being one of the first studies in this area, these research findings are particularly valuable for practitioners and researchers.

An alternative IT investment framework based on university learning model in asset management

“…There have been an attempt to extend the conventional ROI to include both the tangible and intangible aspects of the IT project from the investment's perspective. However, it is found that due to the increased complexity, this could offset the benefits it actually brings (Karadag et al, 2009). …”

A Review on Methods for the Assessment of Information System Projects

“…Karadag et al [25] focus on net present value, payback period, cost savings as fi nancial methods and best fi t, previous contacts, new version, and instruction from senior management methods as nonfi nancial methods in their study. Karadag et al [25] defi ne net present value as a fi nancial metric for investment evaluation.…”

“…According to Karadag et al [25], there are mainly two research trends related to IS investment decisions within the literature. While the fi rst trend focuses on IT productivity and benefi t measurement issues by empirical data gained from case studies from diff erent industries, the second trend concentrates on literature reviews on evaluation methods and processes.…”

“…Nowadays, effi cient IT investment methods gain a pace to rebalance strategic benefi ts and IT expenditures. Th e main challenges that decision makers face are avoidance of perceived risk, unavail-ability of precise measurement methods and lack of detailed identifi cation and assessment of the costs and benefi ts of IS project investments [25].…”

Customer Relationship Management (CRM) Technology and Organization Performance: Is Marketing Capability a Missing Link? An Empirical Study in the Malaysian Hotel Industry

“…Some of studies reveal non significant relationship between technology and hotel performance (Ham, Gon Kim & Jeong, 2005;Karadag, Cobanoglu & Dickinson, 2009;Law & Au, 1998;Tavityaman, Qu & Zhang, 2011). They argue that organizations have spent tremendous resources on information and computer technologies without achieving enhanced performance from all such expenditures.…”