Information strategy and economics
Information strategy and economics
Evaluation of strategic investments in information technology
Communications of the ACM
Journal of Management Information Systems
MIS Planning: a methodology for systems prioritization
Information and Management
A comprehensive approach to assess the value of EDI
Information and Management
A Case for Using Real Options Pricing Analysis to Evaluate Information Technology Project Investment
Information Systems Research
Something is missing: enterprise architecture from a systems theory perspective
ICSOC/ServiceWave'09 Proceedings of the 2009 international conference on Service-oriented computing
Modeling the benefit of e-recruiting process integration
Decision Support Systems
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Ever since investments in IT moved from operational to decision support, academics and practitioners have been looking for ways to justify the costs. Traditional approaches, such as NPV, have been shown inadequate in capturing qualitative and quantitative benefits, and techniques developed to address the issue have proved limited in their ability to link investment justification with impact assessment. Recent literature has called for the use of business processes to assess the impact of IT and the same processes can be used to justify investments in IT. The activity-based costing (ABC) approaches in the field of accounting were developed to relate investments to product profitability by allocating the burden to those that receive the most benefit. Thus, this paper uses the ABC approach to relate investments to activities, so that it can be used to justify IT investment. The paper provides a model to determine when the approach, referred to as activity-based justification, is most appropriate and its value is illustrated using a case study.