David Targett

Evaluating investments in IT

Evaluating the costs and benefits of IT projects is currently a major issue for senior general managers. This paper focuses on a particular aspect of the problem: how organizations appraise IT investments in taking the decision whether to go ahead with them or not. The paper looks first at the different roles of evaluation; second at what is done in practice and third at what might be done given the wide range of techniques that are available and the widely different circumstances in which appraisal is undertaken. A speculative heuristic is proposed for matching an evaluation method with a particular situation. The method is presented in the hope of stimulating further research into the matching problem.

The moving staircase – Problems of appraisal and evaluation in a turbulent environment

This paper considers the problems of evaluating the benefits of an investment in information technology and systems against a background of institutional change. It is based on a case study in the National Health Service and follows the progress of a project to introduce benefits realisation in NHS Trusts. The case illustrates the importance of personal, hands‐on attention to benefits management and calls attention to the different contingencies faced by managers in attempting to introduce evaluation or benefits realisation schemes. It concludes that, where managers face “certain” contingencies, formative evaluation will be beneficial, but where the contingencies are uncertain, structural changes in the organisation may be more effective in achieving benefits. The paper ends with a plea for evaluation activities to be re‐integrated into their organisational context.

Matching an IT Project with an appropriate method of evaluation: a research note on ‘Evaluating Investments in IT’

This note addresses the problem of choosing an appropriate method when evaluating an IT investment as set out in a previous work. The problem arises immediately because there are many methods on offer for performing the evaluation and a great number of different situations in which those methods could be applied. There is thus a problem of matching the method to the situation across many dimensions. In the previous paper the authors spelled out some of these dimensions on the basis of empirical work and proposed a matching method derived by trial and error which had, at the time, no theoretical foundations. Further research has suggested a possible rationale and it is that which is presented here, together with a further dimension on which the matching may be carried through.

A senior executive end‐user framework

Senior executives make decisions about their organizations information technology (IT) budgets that often involve substantial expenditure. Yet, in terms of their own competence in using IT, there is evidence to suggest that they may not be the best members of the organization to make such decisions. This paper reports on a study of 85 senior executives across 16 large organizations and the depth and breath of applications these executives use to support them at an individual level. The research design and methodologies were based on the principles of grounded theory. The primary source of data collection was in‐depth interviews. A number of end‐user frameworks have been developed by previous authors; however, most are more pertinent to middle and junior managers. Based on the analysis of the data from this study an end‐user framework is proposed that is more appropriate for senior executives.

Strategic information systems in the banking sector: holy grail or poison chalice

The literature of the 1980s was full of exhortations to companies to use information technology (IT) strategically. On the whole. thn meant using IT to gain competitice advantage of one .sort or another. By the end of the decode and into the 1990s, the claims for IT were less bullish and, in some sectors, IT began to be seen as a strategic necessity rather than as a means to gaining competitive advantage. There were suggestions that the high level of IT investment in certain sectors was becoming a competitioe burden. For example, research into the strategic use of IT in the banking sector-a heavy incestor in IT in the past and recently subject to changes which have increased competition pressures—proivides evidence to support such contentions. Attempts to move from one technological technological trajectory which supported the old competitive environment to a trajectory more in line with the new customer-oriented environment have been hampered by a number of factors. It is as the banks have become caught ...

Evaluating business information systems: reflections on an empirical study

Abstract. A leading vendor of information technology (IT) systems commissioned the authors to investigate how its clients made their decision to acquire new systems, what benefits they expected to gain, and the kind of evaluation procedures used both before taking the decision to go ahead and subsequently when the systems were in operation. The 16 organizations participating in the study had all purchased major systems and were willing to talk frankly about their experiences. The results of the research have been extensively reported elsewhere. The purpose of this paper is to draw out the implications for IT management. The paper opens with a summary of the findings of the original research. The main part of the paper consists of six case studies from which the management issues are drawn out.

The ITBE 2000 initiative: are business schools meeting the challenge of management and IT in the 21st century?

Tomorrow’s senior managers will face the challenge posed by the current transition from an industrial to an information-based economy. Their ability to perform successfully into the 21st century will depend upon a profound understanding of the business impact of information technology (IT) and information systems (IS). They will be able to delegate decisions and responsibilities but not understanding. The senior managers of the 21st century, many of whom are part of the existing management stock, are being educated today in a wide variety of business schools throughout Europe. Both business and academic worlds are in agreement that the management of information resources will be one of the key business skills of the future. One of the major findings from the Massachusetts Institute of Technology’s Management in the 1990s Research Programme’ (MIT90s) was that IT-induced business re-configuration is the new strategic management challenge. For some time the major business schools have been devoting considerable resources to research in this area. The MIT90s project. involving twelve sponsoring organizations each donating

Computerized marketing databases: their role now and in the future

0.5 million in cash and probably the same in other resources, is a prime example but not the only example. Research seems to be receiving its fair share of attention. but what are business schools doing to develop new approaches for teaching IS? Many educators are concerned that past approaches to teaching IS. in which technical issues and process automation were stressed. are at best inappropriate and at worst damaging because they can obscure the strategic challenge ofIS. Business schools are adopting a wide range of approaches to the problems but many admit to a real uncertainty about the best way ahead. There is a vital need to tackle these issues which concern business as much as business schools. Forwardlooking organizations. aware of the changing management role. are exactly the organizations which are keenly interested in the supply of a key resource. They wish to find managers who have both business and IS skills and who are also able to take an international perspective. The ITBE 2000 Initiative. with participants from business and business schools. seeks to provide a forum for the exchange ofexperiences and the development of ideas concerning IT and business education. This article explains ITBEs objectives and describes the First Annual Meeting held at the Theseus Institute in Nice when leading business schools and business organizations from eleven European countries were represented.

How to assess your IT investment : a study of methods and practice

The application of IT to the marketing function for strategic purposes has been the subject of much debate. At the same time the use of computerized marketing databsses has experienced rapid growth which is likely to continue. This paper reports a research survey to find out about the use of CMDs and, specifically, whether they are being used strategically.