Prioritization Framework of Information Technology Investment at Regional Banks (Case Study: Indonesia)

Abstract

Information Technology needs in Indonesia currently cause the increase of corporate expense to invest in the Information Technology sector. This has become a major challenge for various companies in Indonesia, including the Regional Bank. Having limited resources is one of the factors of Regional Bank whose IT projects have to be evaluated to provide optimal IT planning results. IT project evaluation includes feasibility analysis and project prioritization. Feasibility analysis can be carried out using Information Economics (IE) method, but there is no method that can prioritize IT projects accurately in accordance with the company's business objectives. Therefore, this study aimed to prioritize IT projects by developing a prioritization framework and giving weight to each of the criteria contained in the IE method. The method used in the preparation of prioritization and weighting frameworks was Analytical Hierarchy Process (AHP). This study used one of the Regional Banks in Indonesia as a case study. Based on the results of the weighting on the IE criteria, the priority criteria for Regional Banks are Quasi Tangible criteria with a weight of 63%, followed by Intangible criteria with a weight of 26% and Tangible with a weight of 11%. The suitability of these results showed that to produce accurate IT investments prioritization and in line with the company's business objectives, specific criteria and methods were needed.