From business case to value case - Assessing the organizational value of it investments

Managers continually invest in new information technology (IT) but the question of organizational value still seems vague. One explanation is poor evaluation. In practice the Business Case including Return on Investment (ROI) still dominate. Information System research has noted for a long time that the Economic Approach is not sufficient and instead the Interpretative IT Evaluation Approach has been put forward. However, the approach has reached limited acceptance in practice and it has been noted that what to evaluate is a far more complex process than might first appear. The aim of this study is to articulate factors and criteria that are important to consider when assessing the organizational value of IT investments. This study is part of a Collaborative Practice Research project that took place 2005-2008 at three public organizations. The findings indicate that it is time to take a step from a Business Case to a Value Case. The Value Case is a pluralistic, a formative and a formalized approach that includes factors and criteria that have its base in prior research and have been further discussed and analyzed by the respondents. The Value Case also put management’s attention to effectiveness and efficiency, the task of management.