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A process-focused decision framework for analyzing the business value potential of IT investments

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  • Helana Scheepers

    (Monash University)

  • Rens Scheepers

    (The University of Melbourne)

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.

Suggested Citation

  • Helana Scheepers & Rens Scheepers, 2008. "A process-focused decision framework for analyzing the business value potential of IT investments," Information Systems Frontiers, Springer, vol. 10(3), pages 321-330, July.
    • Handle: RePEc:spr:infosf:v:10:y:2008:i:3:d:10.1007_s10796-008-9076-5
    DOI: 10.1007/s10796-008-9076-5
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    References listed on IDEAS

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    1. Anitesh Barua & Charles H. Kriebel & Tridas Mukhopadhyay, 1995. "Information Technologies and Business Value: An Analytic and Empirical Investigation," Information Systems Research, INFORMS, vol. 6(1), pages 3-23, March.
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    4. Keeney, Ralph L., 1996. "Value-focused thinking: Identifying decision opportunities and creating alternatives," European Journal of Operational Research, Elsevier, vol. 92(3), pages 537-549, August.
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    Cited by:

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    2. Emanuele Gabriel Margherita & Alessio Maria Braccini, 2023. "Industry 4.0 Technologies in Flexible Manufacturing for Sustainable Organizational Value: Reflections from a Multiple Case Study of Italian Manufacturers," Information Systems Frontiers, Springer, vol. 25(3), pages 995-1016, June.
    3. Trkman, Peter, 2010. "The critical success factors of business process management," International Journal of Information Management, Elsevier, vol. 30(2), pages 125-134.
    4. Chulhwan Chris Bang, 2015. "Information systems frontiers: Keyword analysis and classification," Information Systems Frontiers, Springer, vol. 17(1), pages 217-237, February.
    5. vom Brocke, Jan & Braccini, Alessio Maria & Sonnenberg, Christian & Spagnoletti, Paolo, 2014. "Living IT infrastructures — An ontology-based approach to aligning IT infrastructure capacity and business needs," International Journal of Accounting Information Systems, Elsevier, vol. 15(3), pages 246-274.
    6. Petter Gottschalk, 2010. "Knowledge management technology for organized crime risk assessment," Information Systems Frontiers, Springer, vol. 12(3), pages 267-275, July.
    7. Emanuele Gabriel Margherita & Alessio Maria Braccini, 2021. "Industry 4.0 Technologies in Flexible Manufacturing for Sustainable Organizational Value: Reflections from a Multiple Case Study of Italian Manufacturers," Post-Print hal-03442440, HAL.
    8. Samuel Fosso Wamba & Akemi Takeoka Chatfield, 2011. "The impact of RFID technology on warehouse process innovation: A pilot project in the TPL industry," Information Systems Frontiers, Springer, vol. 13(5), pages 693-706, November.

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