A Concept of Information Technology Investment Evaluation Framework

The need for the current application of Information Technology has led to an increase in corporate spending to invest in Information Technology. The most common issue for companies that want to implement systems and Information Technology is the magnitude of the risks and costs that must be incurred. IT investments have special characteristics, which are high risk, considerable cost, and the perceived benefits are largely intangible. This also applies to companies located in developing countries, especially Indonesia. A common problem that makes IT investment difficult in Indonesia is the imbalance of costs and benefits and the results are very uncertain. The existence of problems related to the difficulty of making IT investment is the reason for the need to evaluate IT investment. The IT investment evaluation is not only limited to knowing whether the investment is feasible or not, but also prioritizing the investment. Information Economics (IE) method is a comprehensive method used to analyze the feasibility of IT investment. However, in Indonesia alone there is no method that can directly prioritize IT investment with the criteria that have been set in accordance with the needs of developing countries. Based on these problems, this study aims to provide a prioritized IT investment framework that will be implemented in one company in Indonesia, which uses components in the IE method as criteria for prioritization. Using the Analytical Hierarchy Process (AHP) method to weight and compile the IT investment prioritize framework tailored to the needs of companies in Indonesia. This research uses a qualitative method and the result of this research is a prioritization hierarchy framework based on IE component. Through the prioritization of IT investment framework, it is expected to improve the accuracy of IT investment decisions to support the company's business processes, especially in Indonesia. It is also expected to answer the problems that occurred during this time related to the unbalanced funds needed and funds issued.