Development of methodologies for measuring IT capability in the information and communication industries

Abstract

There are many studies regarding the IT (Information Technology) value, however until now there are not yet any researches discussing an exact method to estimate this value. Accordingly, this study tries to present a methodology to assess this value using both qualitative and quantitative methods. The offered methodology addresses valuation of IT by means of IT value definition approach as a division of functions by costs. This valuation will be achieved by analyzing functions and costs previously, in turn, results in the intrinsic IT value. Additionally, this methodology using the Telkom data is simulated to test its accuracy. The results show that there is an alignment between the offered methodology and the case study, although there still should be improved here.