IS Evaluation A Process for Bringing Together Benefits, Costs, and Risks

Abstract

Abstract Investment in information technology (IT) and associated information systems (IS) in the UK is substantial. Fifty-eight of the top 150 companies spend more than 2 per cent of turnover on IT and 96 more than 1 per cent (Spikes Cavell, 1996). In 1995/6 central government spending in the UK was of the order of £2.3lbn (Taylor, 1996). Statistics from other countries reveal massive IT expenditure throughout the industrialised world. At the same time IT spending is under pressure from the perception of a ‘productivity paradox’. At firm, industry, and economy level the relationship between IT spending and return in the form of greater productivity and shareholder value is seriously questioned (for example, Love man, 1994). However, these findings are much debated (for example, Brynjolfsson, 1993) and a number of reasons why purely statistical findings could be misleading have been suggested, one of which is that inadequate evaluation practices have resulted in poor selection and management of projects.