Test

In: Other Topics

Submitted By germyanto
Words 6853
Pages 28
Chapter 1

Introduction to Information Technology Investment Decision-Making

Learning Objectives After completing this chapter, you should be able to: • • • • • Describe different types of IT investment decisions manager face. Briefly describe some of the methodologies that are used in IT investment decision-making. Explain why IT investment decision-making is important as a subject to study. Explain some of the limitations that should be considered when using IT investment methodologies. Explain the role of IT investment decision-making within organizational planning.

Prologue Information technology (IT) investment decision-making impacts all industries but sometimes in different ways. For example, Karadag et al. (2009) explored the importance of IT investment decision-making methodology in lodging industry. The research found that evaluation activities for hotel IT investments have not been performed widely and consistently and that some types of hotels tend to use more financial and non-financial IT evaluation methods, since all investments are expected to show a positive return on investment. The research findings highlight the importance of the use of IT investment evaluation techniques and the
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Information Technology Investment: Decision-Making Methodology

major differences in their use require a substantial need for understanding a wide variety of IT investment methodologies to satisfy decision-making needs. To provide useful decision-making in IT investments today requires a broad understanding of the varied tools IT investment methodologies. Introduction The productivity paradox refers to the absence of a positive relationship between spending on information technology or IT and its resulting contribution to productivity or profitability (Lucas, 1999). Robert Solow, the 1987 Noble Prize winning economist felt there was a singular…...

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