Abstract

With increased spending of information systems (IS), IS evaluation is becoming increasingly important. It is important for organisations to evaluate business value of IS they have spent a portion, sometimes large, of their yearly revenue on. For that purpose, however, practitioners and researchers still have not agreed on a single method, although cost-benefit analysis seems to be a flavour among IS practitioners. The decision on which evaluation method is more appropriate in a particular situation is largely context dependent. Evaluators commonly face a difficult situation in choosing the right method for a particular context. This paper first reviews different terms being used to describe evaluation of IS business value. Next, it presents past research results about IS evaluation practices of organisations. It then proceeds to provide a summary of IS evaluation methods, IS evaluation approaches, and IS evaluation types. Last, it concludes with research themes of IS evaluation studies.

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