The evaluation of information technology and its business value are the subjects of many academic and business discussions. Investments in IT are growing extensively and business managers worry whether the benefits derived might not be as high as expected. This phenomenon is often called the IT investment paradox or the IT Black Hole: large sums of money are invested in IT that seem to be swallowed by a large black hole without rendering much return. How to measure the benefits of IT is the concern of Technology Evaluation Methods and Management . Different IT evaluation approaches and methods are discussed and illustrated with cases: traditional financial evaluations such as the return on investment, information economics and the recently introduced IT Balanced Scorecard. The latter approach is proposed as an ideal mechanism to support the IT/business alignment process and its related IT governance process.
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The evaluation of IT and its business value are recently the subject of many academic and business discussions. Investments in IT are growing extensively and business managers worry about the fact that the benefits of IT investments might not be as high as expected. This phenomenon is often called the Investment Paradox or the IT Black Hole: large sums are invested in IT that seems to be swallowed by a large black hole without rendering many returns. Getting value from IT and the evaluation of IT will be the concern of this book. This book "Information technology evaluation methods and management" brings together seventeen papers on IT evaluation written by academics and practitioners from different countries including Australia, Belgium, Canada, The Netherlands, South Africa, United Kingdom, and the United States.
Potential contributors were reached through a Call for Chapters issued on the Web and distributed at the 1999 International Resources Management Association (IRMA) Conference in Hershey (US) and at the 1999 International Symposium on the IT Balanced Scorecard in Antwerp (Belgium). Presenters with interesting papers on IT evaluation at the 2000 edition of both conferences were invited to expand their paper into a chapter and submit it for this book.
The different contributions in this book discuss besides the more traditional methods that focus on financial measures such as the return on investment, also a number of alternative evaluation methods and the recent introduced measurement and management system, the IT balanced scorecard.
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