An investment framework for information technology projects in medium sized organisations

Murphy, AD

Abstract

As computers absorb an ever-increasing proportion of corporate resources, and spread
into every sphere of business activity, the issue of achieving benefits from investments
in information technology (IT) is assuming major importance. Research evidence to
hand suggests that IT investments are failing by orders of magnitude to provide appropriate
levels of payback. A major part of the difficulty lies in the fact that management
appears to lack a framework or even a language for addressing the issues, and are bewildered
by the speed and impact of the changes that are taking place. This is particularly
apparent in smaller and medium-sized organisations.
This thesis examines the causes of the problem, and suggests that it stems mainly from
an undue emphasis being placed by management on finance-based techniques, a legacy
from an earlier and much different environment. It seeks to establish that such techniques
are not only inadequate, but potentially counter-productive. Using established research
methodologies, a framework is developed which seeks to address the key issues
involved in achieving business benefits from IT, yet which is understandable to, and
applicable by, managers in medium-sized organisations. Uniquely among IT investment
frameworks, the concept of business reengineering or business process redesign is introduced
as a formal evaluation criterion, reflecting the degree of business transformation
currently being experienced, and the central role of IT in that transformation. The framework
is then validated and refined through being applied in actual investment decision
making processes undertaken by five organisations covering a range of business arenas.

Citation

Murphy, A. An investment framework for information technology projects in medium sized organisations. (Thesis). University of Salford

• Thesis Type: Thesis
• Deposit Date: Aug 5, 2011
• Publicly Available Date: Aug 5, 2011
• Award Date: Jan 1, 1996