Egon Berghout

Methodologies for information systems investment evaluation at the proposal stage: a comparative review

The evaluation of information systems (IS) investments has been a recognized problem area for the last three decades, but has recently gained renewed interest of both management and academics. IS investments constitute a large and increasing portion of the capital expenditures of many organizations. However, it is difficult to evaluate the contribution of an IS investment to the goals pursued. Consequently, there is a great call for methods and techniques that can be of help in evaluating IS investment at the proposal stage. The contribution of the paper to the problem area is twofold. First, the different concepts which are used in evaluation are discussed and more narrowly defined. When speaking about IS investments, concepts are used that originate from different disciplines. In many cases there is not much agreement on the precise meaning of the different concepts used. However, a common language is a prerequisite for the successful communication between the different organizational stakeholders in evaluation. In addition to this, the paper reviews the current methods and puts them into a frame of reference. All too often new methods and guidelines for investment evaluation are introduced, without building on the extensive body of knowledge that is already incorporated in the available methods. Four basic approaches are discerned: the financial approach, the multi-criteria approach, the ratio approach and the portfolio approach. These approaches are subsequently compared on a number of characteristics on the basis of methods that serve as examples for the different approaches. The paper concludes with suggestions on how to improve evaluation practice and recommendations for future research.

Interrupts: just a minute never is

Software development is a highly abstract process that requires intense concentration. The authors show that interrupting this process can significantly reduce a developers efficiency and can even contribute to project delays.

Information technology : strategic decision making for managers

Preface. Chapter 1. Technology Transforms the Organization. Chapter 2. A Dynamic Model of IT Strategy in a Netcentric Economy. Chapter 3. New Business Models. Chapter 4. Organizational Transformation with IT. Chapter 5. Globalization and IT in International Business. Chapter 6. Assessing the Value of Investing in IT: The Productivity Paradox. Chapter 7. Making the IT Investment Decision. Chapter 8. Choosing Technology. Chapter 9. Implementing IT. Chapter 10. Structuring and Managing The IT Function. Chapter 11. Management Control of Information Technology. Chapter 12. The Legacy Environment. Chapter 13. The First Component: Computer Systems. Chapter 14. The Second Component: The Database. Chapter 15. The Third Component: Powerful Networks. Chapter 16. Electronic Commerce: Changing How Business Is Done. Chapter 17. Business Process: Examples from ERP and CRM. Chapter 18. Decision and Intelligent Systems. Chapter 19. Knowledge Management: Benefiting from Core Competencies. Chapter 20. Technology Haves and Have Nots: The Digital Divide in the US and the World. Chapter 21. Ethical Issues and a Look Ahead. Bibliography. Index.

From process improvement to people improvement: enabling learning in software development

The importance of people factors for the success of software development is commonly accepted, because the success of a software project is above all determined by having the right people on the right place at the right time. As software development is a knowledge intensive industry; the ‘quality’ of developers is primarily determined by their knowledge and skills. This paper presents a conceptual model of nine ‘learning enablers’ to facilitate learning in software projects. These enablers help identifying whether individual and/or organisational learning is facilitated. The main question addressed in this paper is: ‘Which factors enable learning in software projects and to what extent?’ q 2000 Elsevier Science B.V. All rights reserved.

Integrating goal-oriented measurement in industrial software engineering: industrial experiences with and additions to the Goal/Question/Metric method (GQM)

Two major additions to the GQM (Goals/Questions/Metrics) method are presented based on seven years of experience with goal-oriented measurement programmes. GQM, is a method to organize software measurement programmes. Since the initial ideas of GQM were first published, much industrial experience has been gained and theory has been developed to underpin the approach. Two additions concern a thorough elaboration of the feedback of measurement data and a conjoined cost/benefit analysis of the GQM project. The first addition refers to establishing conditions that are necessary to facilitate learning in software measurement programmes. Learning about software quality is identified as the most important objective of a measurement programme. The second addition refers to identifying whether the measurement programme was actually worthwhile. Through a cost/benefit analysis, the software measurement activity is brought in perspective with other business objectives. Case study research illustrates the importance of both additions. In the past seven years, we have been involved in 15 measurement programmes in five industrial organizations. Successes and failures in these organizations support the importance of both additions. The two additions (feedback sessions and cost/benefit analyses) are described in detail.

Cost management of IT beyond cost of ownership models: a state of the art overview of the Dutch financial services industry

Controlling costs is an essential part of a value driven information technology (IT) management. This paper gives a state of the art overview of IT cost management practice. Both theoretical and an empirical approach are taken. The theoretical approach is based on both general accounting literature and a study of comprehensive and total cost of ownership models as propagated by various consultants. IT cost management in practice is studied through case studies at IT departments in 10 major financial services companies in the Netherlands

Management of lifecycle costs and benefits: Lessons from information systems practice

Assessing the economic feasibility of information systems (IS) projects and operations remains a challenge for most organizations. This research investigates lifecycle cost and benefit management practices and demonstrates that, overall, although organizations intend to improve their information technology (IT) management, they squander many opportunities to do so. There are inconsistencies in cost/benefit management practices. Most organizations that integrate operational benefits into investment analyses do not acknowledge operational costs. Planned project goals are seldom formulated in a verifiable or measurable way; there is little structured feedback on individual lifecycle activities, nor co-ordination of various activities. Thus, the attitude towards cost/benefit management appears primarily context-related and incident-driven. A further development of the system lifecycle-based approach is needed to improve IT cost/benefit management theory and practice, because a coherent set of methods is required to assess IT costs and benefits throughout the entire lifecycle.

Case studies in research: Understanding the impact of business cases on IT investment decisions: An analysis of municipal e-government projects

This study synthesizes the extant literature to derive an integrative developmental framework for IT business cases that can be applied to diagnose the feasibility of technological investments. We then construct a theoretical model that postulates the impact of IT business case elements on the initial cost estimates of technological investments. Subsequently, our theoretical model is subjected to empirical validation through content analysis of IT business cases developed for municipal e-government projects. Findings indicate that the richness of the richness of business cases translates to more initial costs being identified in technological investments, thereby conserving resources for the organization through informed investment decisions.

No Improvement without Learning: Prerequisites for Learning the Relations between Process and Product Quality in Practice

Generic relationships between process and product quality are rarely available, because such relationships are highly depending on context factors; the impact of a certain process on product quality is often largely influenced by the characteristics of the specific organisation, processes, business domain, people, timing factors, etc. This does not mean we should stop investigating those relationships, but that we have to look at these context factors and learn these relationships within such a specific context. Creating an organisational structure, in which effective learning is established, is, therefore, a major challenge for organisations in the software domain. In this paper a conceptual model is presented of nine ‘learning enablers’ to facilitate learning. These enablers help in determining individual and organisational learning during improvement programmes. The main question that is addressed in this paper is: ‘Which factors enable learning in software process improvement and to what extent?’

Measuring the Effects of Information Systems on the Performance of Operating Rooms OR

The paper applies various qualitative and quantitative methods to measure the influence of information technology on the performance of operating rooms ORs. It provides a comprehensive set of indicators to evaluate the impact of IT on the quality, efficiency and performance of ORs. This set of indicators was further enriched by conducting interviews with hospital professionals. The result is a new set of performance indicators, divided into five major categories: productivity, efficiency, quality, cost savings and employee satisfaction. This set of indicators serves as a basis for a weighed performance model that can be applied as a useful tool for selecting new OR information systems. Additionally, the model can be used for improving existing applications. The research identifies time registration, integration with the medical and financial systems of the hospital and production of activity queries and reports as the most common functions of ORs systems. However, despite their potential to contribute to productivity, efficiency and quality of ORs, automatic conflict recognition, material and personnel planning are less frequently applied by hospitals. Finally, the paper highlights the links between efficient use of OR systems, larger volumes of operations and higher occupation rates, and assists in identifying positive effects of systems used in ORs on their performance.