A process-focused decision framework for analyzing the business value potential of IT investments |
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Authors: | Helana Scheepers Rens Scheepers |
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Affiliation: | (1) Faculty of Information Systems Technology, Monash University, Monash, Victoria, 3145, Australia;(2) Department of Information Systems, The University of Melbourne, Carlton, Victoria, 3010, Australia |
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Abstract: | A key consideration during investment decision making is the overall business value potential of an information technology
(IT) solution. The complexity of the contemporary IT landscape is increasing. As information systems and technologies become
more advanced and interconnected, they often impact multiple business processes in the organization. This in turn increases
the complexity of IT investment decisions. This paper describes a decision framework for considering investments in information
technologies that impact multiple business processes in the organization. The decision framework is illustrated via a case
study of a small business that invested in mobile and wireless computing. The microcosm of the small business serves to illustrate
some aspects of the business value derived from information technology investments that are often challenging to isolate in
more complex organizational environments. The decision framework can support managers to analyze the overall business value
returns arising from the ‘ripple effect’ of an IT investment on core and ancillary business processes. In the decision framework,
the business value ripple effect is analyzed via a vertical dimension that emanates from core business processes to ancillary
processes, and a horizontal dimension that extends over time.
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Keywords: | Business value Decision framework Mobile and wireless technology Small and medium enterprises |
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