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Information Systems Frontiers

, Volume 10, Issue 3, pp 321–330 | Cite as

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

  • Helana ScheepersEmail author
  • Rens Scheepers
Article

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.

Keywords

Business value Decision framework Mobile and wireless technology Small and medium enterprises 

Notes

Acknowledgement

We are grateful to the special issue editors for their helpful comments.

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Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  1. 1.Faculty of Information Systems TechnologyMonash UniversityMonashAustralia
  2. 2.Department of Information SystemsThe University of MelbourneCarltonAustralia

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