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Beyond the Business Case: Strategic IT Investment

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dc.creator Beath, Cynthia
dc.creator Ross, Jeanne
dc.date 2002-08-12T15:45:06Z
dc.date 2002-08-12T15:45:06Z
dc.date 2002-08-12T15:45:16Z
dc.date.accessioned 2013-05-31T18:33:34Z
dc.date.available 2013-05-31T18:33:34Z
dc.date.issued 2013-06-01
dc.identifier http://hdl.handle.net/1721.1/1571
dc.identifier.uri http://koha.mediu.edu.my:8181/jspui/handle/1721
dc.description Traditionally, most firms? IT capital investment decisions have been based on business cases estimating financial returns on individual applications. Infrastructure costs were often bundled with applications, although disruptive technologies, such as desktop computing and Internet protocols, led to occasional large lump sum investments. In this paper, we argue that firms should make four distinct types of IT investments: transformation, renewal, process improvements, and experiments. Transformation initiatives create significant, long-term infrastructure that enables major changes in organizational processes. Renewal initiatives improve the efficiency or effectiveness of existing shared IT platforms. Business process improvement initiatives increase the net value of business activities, products or services by leveraging, not building, shared infrastructure. Experiments are business applications focused on identifying and developing opportunities afforded by IT. We describe these four types of initiatives and illustrate them using evidence from field research and case studies. We conclude that firms sho uld be investing in all four types of initiatives in order to address both short-term profitability and longer-term survival and growth and to develop the robust IT environment and business applications that are needed to support their desired business model.
dc.format 137099 bytes
dc.format application/pdf
dc.language en_US
dc.relation Center for Information Systems Research;323
dc.relation MIT Sloan School of Management Working Paper;4357-01
dc.subject IT investment
dc.subject Business Case
dc.title Beyond the Business Case: Strategic IT Investment

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