Justifying IT system investments
by Teemu Paavola
International Journal of Healthcare Technology and Management (IJHTM), Vol. 8, No. 1/2, 2007

Abstract: One may see an IT system investment as unavoidable expenditure, while another may see it as an investment and expect a return at least as high as the returnon capital employed. The decision process may also be influenced by political criteria at the expense of rational justifications, which presents a challenge for the choice and use of formal evaluation methods. Nevertheless, these tools can only be used successfully if there is sufficient knowledge of the phenomenon being examined. For example, in the cost benefit analysis of IT projects, failure to identify the benefits will simply result in a detailed description of the project's costs. Focusing on both macro and micro-level issues, this article takes a look at the phenomena and challenges involved in decision processes when justifying IT investments.

Online publication date: Sun, 21-Jan-2007

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