Information technology and systems justification: A review for research and applications

Information technology (IT) such as Electronic Data Interchange (EDI), Radio Frequency Identification Technology (RFID), wireless, the Internet and World Wide Web (WWW), and Information Systems (IS) such as Electronic Commerce (E-Commerce) systems and Enterprise Resource Planning (ERP) systems have had tremendous impact in education, healthcare, manufacturing, transportation, retailing, pure services, and even war. Many organizations turned to IT/IS to help them achieve their goals; however, many failed to achieve the full potential of IT/IS. These failures can be attributed at least in part to a weak link in the planning process. That weak link is the IT/IS justification process. The decision-making process has only grown more difficult in recent years with the increased complexity of business brought about by the rapid growth of supply chain management, the virtual enterprise and E-business. These are but three of the many changes in the business environment over the past 10–12 years. The complexities of this dynamic new business environment should be taken into account in IT/IS justification. We conducted a review of the current literature on IT/IS justification. The purpose of the literature review was to assemble meaningful information for the development of a framework for IT/IS evaluation that better reflects the new business environment. A suitable classification scheme has been proposed for organizing the literature reviewed. Directions for future research are indicated.

[1]  Sherry D. Ryan,et al.  Considering Social Subsystem Costs and Benefits in Information Technology Investment Decisions: A View from the Field on Anticipated Payoffs , 2000, J. Manag. Inf. Syst..

[2]  Susan A. Brown,et al.  Reaping the benefits of innovative IT: the long and winding road , 2001, IEEE Trans. Engineering Management.

[3]  Lorin M. Hitt,et al.  Information Technology and Internal Firm Organization: An Exploratory Analysis , 1997, J. Manag. Inf. Syst..

[4]  Fred D. Davis,et al.  A Model of the Antecedents of Perceived Ease of Use: Development and Test† , 1996 .

[5]  C. Wiseman,et al.  Information systems for competitive advantage: implementation of a planning process , 1990 .

[6]  Philip Powell,et al.  Causality in the alignment of information technology and business strategy , 1993, J. Strateg. Inf. Syst..

[7]  Carolyn J. Green,et al.  Beyond effectiveness: the evaluation of information systems using a comprehensive health technology assessment framework , 2002, Comput. Biol. Medicine.

[8]  David Targett,et al.  The great IT benefit hunt , 1994 .

[9]  Robert J. Kauffman,et al.  Limits to value in electronic commerce-related IT investments , 2000, Proceedings of the 33rd Annual Hawaii International Conference on System Sciences.

[10]  Rajiv D. Banker,et al.  Reporting manufacturing performance measures to workers: An empirical study , 1993 .

[11]  Gordon B. Davis,et al.  Diagnosis of an information system failure: A framework and interpretive process , 1992, Inf. Manag..

[12]  C. James Bacon,et al.  The Use of Decision Criteria in Selecting Information Systems/Technology Investments , 1992, MIS Q..

[13]  Larry Press Personal computing: personal computers and the world software market , 1991, CACM.

[14]  Petter Gottschalk,et al.  Implementation predictors of strategic information systems plans , 1999, Inf. Manag..

[15]  J. M. Pennings,et al.  Information technology and organizational performance , 1994 .

[16]  Robert J. Kauffman,et al.  An Exploratory Econometric Analysis of Shared Electronic Banking Network Adoption , 1993, J. Strateg. Inf. Syst..

[17]  Edmond P. Fitzgerald,et al.  Understanding “IS business value”: derivation of dimensions , 1999 .

[18]  Matt E. Thatcher,et al.  The Impact of Technology Investments on a Firm’s Production Efficiency, Product Quality, and Productivity , 2001, J. Manag. Inf. Syst..

[19]  J. Sarkis,et al.  Short-termism and the appraisal of AMT capital projects inthe US and UK , 1997 .

[20]  Lorin M. Hitt,et al.  Productivity, Business Profitability, and Consumer Surplus: Three Different Measures of Information Technology Value , 1996, MIS Q..

[21]  Kenneth L. Kraemer,et al.  Executives’ Perceptions of the Business Value of Information Technology: A Process-Oriented Approach , 2000, J. Manag. Inf. Syst..

[22]  E. Huerta Arribas,et al.  Evaluation models of information technology in Spanish companies: a cluster analysis , 1999, Inf. Manag..

[23]  Frank Charles Gray Southon,et al.  IT, Change and evaluation: an overview of the role of evaluation in health services , 1999, Int. J. Medical Informatics.

[24]  Michel Benaroch,et al.  Managing Information Technology Investment Risk: A Real Options Perspective , 2002, J. Manag. Inf. Syst..

[25]  Yong Jin Kim,et al.  Strategic actions in information technology investment based on real option theory , 2002, Decis. Support Syst..

[26]  Eric K. Clemons,et al.  Evaluation of strategic investments in information technology , 1991, CACM.

[27]  Peter A. Bloniarz,et al.  A cost and performance model for Web service investment , 2000, CACM.

[28]  Elske Ammenwerth,et al.  Evaluation of health information systems - problems and challenges , 2003, Int. J. Medical Informatics.

[29]  D. R. Dixon,et al.  The behavioral side of information technology , 1999, Int. J. Medical Informatics.

[30]  Vimla L. Patel,et al.  'Televaluation' of clinical information systems: an integrative approach to assessing Web-based systems , 2001, Int. J. Medical Informatics.

[31]  D. Fink,et al.  Action: the most critical phase in outsourcing information technology , 2003 .

[32]  Neil F. Doherty,et al.  Towards the formulation of a comprehensive framework for the evaluation of investments in sell-side e-commerce , 2002 .

[33]  R. Kelly Rainer,et al.  Executive Information Systems: A Framework for Development and a Survey of Current Practices , 1991, MIS Q..

[34]  Zahir Irani,et al.  The Propagation of Technology Management Taxonomies for Evaluating Investments in Information Systems , 2000, J. Manag. Inf. Syst..

[35]  Theodore K. Apostolopoulos,et al.  Information technology investment evaluation: Investments in telecommunication infrastructure , 1997 .

[36]  K. Milis,et al.  The use of the balanced scorecard for the evaluation of Information and Communication Technology projects , 2004 .

[37]  François Bergeron,et al.  An information technology trilogy: business strategy, technological deployment and organizational performance , 2001, J. Strateg. Inf. Syst..

[38]  R. Sundarraj,et al.  Factors for strategic evaluation of enterprise information technologies , 2000 .

[39]  Dan Remenyi,et al.  Management of information technology evaluation ‐ the development of a managerial thesis , 1999 .

[40]  Rajiv Kohli,et al.  Information Technology Payoff in the Health-Care Industry: A Longitudinal Study , 2000, J. Manag. Inf. Syst..

[41]  M. H. Small,et al.  Economic and strategic justification of AMT inferences from industrial practices , 1997 .

[42]  Christian Wagner,et al.  Enterprise strategy management systems: current and next generation , 2004, J. Strateg. Inf. Syst..

[43]  D. J. Wu,et al.  Investment in Enterprise Resource Planning: Business Impact and Productivity Measures , 2002, J. Manag. Inf. Syst..

[44]  Sherry D. Ryan,et al.  Information-Technology Investment Decisions: When Do Costs and Benefits in the Social Subsystem Matter? , 2002, J. Manag. Inf. Syst..

[45]  Zahir Irani,et al.  Information systems evaluation: navigating through the problem domain , 2002, Inf. Manag..

[46]  Z. Irani,et al.  Integrating the costs of a manufacturing IT/IS infrastructure into the investment decision-making process , 1997 .

[47]  Sharman Lichtenstein,et al.  Factors in the selection of a risk assessment method , 1996, Inf. Manag. Comput. Secur..

[48]  Suleiman K. Kassicieh,et al.  Proposed design of a DSS for the justification of advanced manufacturing technologies , 1993 .

[49]  Leslie Will cocks It evaluation: Managing the catch 22 , 1992 .

[50]  J. Ballantine,et al.  Information systems and other capital investments: evaluation practices compared , 1999 .

[51]  Guisseppi A. Forgionne,et al.  A multiple-criteria framework for evaluation of decision support systems , 2004 .

[52]  M. H. Small,et al.  Investment justification of advanced manufacturing technology: An empirical analysis , 1995 .

[53]  A. Sohal,et al.  IT projects: evaluation, outcomes and impediments , 2003 .

[54]  Z. Irani,et al.  Assessing the value and cost implications of manufacturing information and data systems: an empirical study , 1998 .

[55]  Soung Hie Kim,et al.  Using analytic network process and goal programming for interdependent information system project selection , 2000, Comput. Oper. Res..

[56]  Steve Smithson,et al.  Rethinking the approaches to information systems investment evaluation , 1999 .

[57]  Angappa Gunasekaran,et al.  A model for investment justification in information technology projects , 2001, Int. J. Inf. Manag..

[58]  Vallabh Sambamurthy,et al.  The Shareholder-Wealth and Trading-Volume Effects of Information-Technology Infrastructure Investments , 2002, J. Manag. Inf. Syst..

[59]  Vijay Sethi,et al.  Information technology and organizational performance: A critical evaluation of Computerworld's index of information systems effectiveness , 1993, Inf. Manag..

[60]  Peter E.D. Love,et al.  Evaluation of IT costs in construction , 2001 .

[61]  Peter E.D. Love,et al.  Applying concepts of fuzzy cognitive mapping to model: The IT/IS investment evaluation process , 2002 .

[62]  Huseyin Cavusoglu,et al.  Model for Evaluating , 2022 .

[63]  Hugh J. Watson,et al.  Assessing the value of conoco's EIS , 1993 .

[64]  Vimla L. Patel,et al.  Cognitive evaluation of decision making processes and assessment of information technology in medicine , 1998, Int. J. Medical Informatics.

[65]  Chad Lin,et al.  The practice of IS/IT benefits management in large Australian organizations , 2003, Inf. Manag..

[66]  H. Wen,et al.  Evaluation of information technology investment , 1999 .

[67]  Varun Grover,et al.  IS investment priorities in contemporary organizations , 1998, CACM.

[68]  Z. Irani,et al.  Benchmarking information technology investment and benefits extraction , 2003 .

[69]  Richard F. Deckro,et al.  Evaluating information assurance strategies , 2005, Decis. Support Syst..

[70]  Shailendra C. Palvia,et al.  A socio-technical framework for quality assessment of computer information systems , 2001, Ind. Manag. Data Syst..

[71]  Shona M. Morse,et al.  Assessing the value , 2006 .

[72]  Nick Rackoff,et al.  SIM Competition Paper: Information Systems for Competitive Advantage: Implemenation of a Planning Process , 1985, MIS Q..

[73]  Bijoy Bordoloi,et al.  A Framework for Assessing the Relationship between Information Technology Investments and Firm Performance , 2000, J. Manag. Inf. Syst..

[74]  Peter E.D. Love,et al.  Industry-centric benchmarking of information technology benefits, costs and risks for small-to-medium sized enterprises in construction , 2004 .

[75]  Ali F. Farhoomand,et al.  Information technology push/pull reactions , 1999, J. Syst. Softw..

[76]  Santosh Chokhani Trusted products evaluation , 1992, CACM.

[77]  Anandhi S. Bharadwaj,et al.  A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation , 2000, MIS Q..

[78]  Leslie P. Willcocks,et al.  Evaluating Information Technology investments: research findings and reappraisal , 1992, Inf. Syst. J..

[79]  KumarKuldeep Post implementation evaluation of computer-based information systems: current practices , 1990 .

[80]  Guy Fitzgerald,et al.  Information technology outsourcing in Europe and the USA: Assessment issues , 1995 .