Measurement and the evaluation of I.T. investments

Abstract

The use of purely economic measures to quantify the benefits that result from an investment in IT provides an explanation as to why there is little evidence of a link between IT investment and improved business performance. The study reported in this paper explored the extent to which non-financial benefits influence IT investment decisions. A multidimensional framework of benefits and measures was validated using data from 25 projects it provides a useful model for the analysis and measurement of benefits and is not dependent on a specific process to justify IT investments. It includes operational measures which are linked to the organisation's main business drivers and these can be monitored after implementation to assist the business management make the organisational changes that are required if the full business benefits are to be achieved.<>