Examine the Feasibility of IT Investment: Identification of the Intangible Benefit Variable in Local Government

Abstract

Information Technology (IT) has been an essential element that inseparable from the business, so it needs to invest in IT. Local Government is one of the institutions that implement IT investment. The purposes of investment in IT devices are to achieve business processes and improve efficiency and effectiveness of performance in Local Government. Company and Local Government have differences in IT investment because Local Government has its uniqueness. One of the uniqueness is Local Government does not familiar with Return on Investment (ROI) in project investment. Therefore, it needs a model that can be a basis for evaluating the feasibility of IT investment, specifically in Local Government. Thus, the management of IT investment is more directed and as needed. This research aims to identify the variables of Intangible benefit that can be used to evaluate the feasibility of IT investment in Indonesian Local Government. Based on the results of the identification of the variables, then authors made a proposed conceptual model that can be used as a reference to evaluate the feasibility of IT investment from a non-financial approach in Indonesian Local Government.