Survey on Available Methods to Evaluate IT Investment
Keywords:Keyword: IT Investment, Evaluation Method, Return on Investment, ROI, Net Present Value, NPV, Payback, PBK, Internal Rate of Return, IRR
AbstractAbstract: Making decisions for Information Technology (IT) investments have become a critical decision in businesses today. IT investments are being seen as a strategic investment for many organizations. However, organizations are also concerned about how IT investment can be translated into dollar returns. In response, earlier literatures had attempted to propose evaluation methods and measurements to justify such investments. Unfortunately, none of these proposed solutions were considered appropriate for IT investment, hence to date, there are still no formal evaluation methods on the measurement of such investments. In view of this, this paper attempts to perform a survey across different evaluation solutions to justify IT investment and seek to further understand the different reasons that may prevent the IT industry from defining a standard evaluation method.
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