Activity-based justification of IT investments
نویسندگان
چکیده
منابع مشابه
Activity-based justification of IT investments
The activity based cost (ABC) approach has been used to relate costs and benefits to various cost pools that drive product profitability within an organization, so that relationships can be established between investments and product profitability. In this paper, using a particular case, we demonstrate the value of the ABC approach for IT investment justification under certain conditions, and d...
متن کاملTheoretical Justification for IT Infrastructure Investments
The strategic importance of building highly capable information technology (IT) infrastructure has become a crucial management issue of the 1990s and beyond. However, in spite of the numerous benefits attributed to IT infrastructure, these claims remain unsubstantiated. This problem is due, in part, to inadequate conceptualizations of IT infrastructure and its measurement as well as a lack of t...
متن کاملJustifying Investments in It
Traditional accounting techniques such as return on investment and net present value are often used when deciding investments in information technology. We examined both academic and trade literature to determine the utility of such techniques and to recognize alternatives. Findings reveal that this survey is needed and is important for information systems managers facing heightened scrutiny of...
متن کاملQuantifying the value of IT-investments
We describe a method to quantify the value of investments in software systems. For that, we adopted the classical risk-adjusted discounted cash flow model and geared it towards the field of information technology. This resulted in a scenariobased approach incorporating two IT-specific risks that can substantially influence IT-appraisals. They are requirements creep and time compression. To acco...
متن کاملEvaluation of Strategic IT Platform Investments
Evaluation of strategic IT investments using traditional capital budgeting methods has proven problematic. This especially entails IT platform investments where the immediate short term benefits are not sufficient to justify the investment. At the same time the investment may entail substantial, although highly uncertain strategic future benefits for the firm, subject to different types of risk...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Information & Management
سال: 2005
ISSN: 0378-7206
DOI: 10.1016/j.im.2003.12.015