Stephanie Stray

Information systems and other capital investments: evaluation practices compared

Reports on the findings of two surveys which examined the way organisations evaluate information systems/technology and other capital of investments. The issues addressed include the following: the extent of evaluation; the extent to which evaluation depends on organisational factors, such as project cost and level of organisational turnover; the existence of formal procedures of evaluation; the financial and other criteria used to evaluate investments, and their importance; and the problems organisations face when evaluating both types of investment. In addressing the above issues the study serves two objectives: first, the findings provide valuable insights regarding the way both types of investments are evaluated, which is currently lacking in both the information systems and the accounting and finance literature, and second, the findings enable confirmation or refutation of some of the popular myths which exist in the information systems literature that such investments are different, are therefore evaluated in a “different” way and present “different” problems when compared to other types of organisational investment.

Financial appraisal and the IS/IT investment decision making process

This paper explores the techniques used by organizations to appraise Information Systems (IS)/Information Technology (IT) investments, and concentrates, in particular, on techniques of capital investment appraisal. We draw on relevant studies reported in both the accounting and finance, and the IS literature, which have addressed their usage. Where possible comparisons are drawn between both sets of literatures. The results of a survey that specifically examined IS/IT investment appraisal practices of a sample of UK companies is also presented. Among the issues discussed include the extent to which capital investment appraisal techniques are used to appraisal investments, the importance of the techniques used and the problems attendant on the decision making process.

Information systems/technology evaluation practices: evidence from UK organizations

The evaluation of information systems technology (IS/IT) investments has been a much debated issue in the IS literature. This paper adds to that debate by discussing the IS/IT project evaluation practices of a sample of the top 1000 UK companies. The study sheds light on a number of evaluation issues, including the extent to which formal procedures of evaluation exist within organizations, and the extent to which consultation with stakeholders takes place, in addition to identifying the problems inherent in evaluating IS/IT investments. The implications of the findings are discussed, where possible in the light of previous research, in addition to identifying a number of key issues where further research is needed.

The Internationalisation Process of Small, Technology-Based Firms

Abstract Forty-four small, technology-based firms were clustered on the basis of size, age and degree of internationalisation. Three groups, (1) small, highly international, young firms (Group 1), (2) small, young, less international firms (Group 2) and (3) larger, older firms with a mid-level of internationalisation (Group 3), were identified. This paper studies the market selection, mode of entry and international expansion processes of these firms in relation to their degree of internationalisation. More recent firms begin to expand internationally at an early stage. The level of international success differs significantly (Groups 1 and 2). Group 2 firms expand rapidly into successive countries and regions and achieve lower levels of international success than Group 1 firms, which expand more rapidly within each market.

A sectoral comparison of corporate environmental reporting and disclosure

The paper considers the results of a survey of companies in the automobile, banking, electronics, energy, food and drink and water sectors in the UK. Consideration is given as to whether or not a company discloses, or intends to disclose in the future, environmental information. For those companies who do disclose environmental information, details are presented of the various media that are used for such disclosures in addition to, or instead of, the use of annual reports and accounts and specialized environmental reports that have, typically, been the focus of previous research. For those companies producing separate environmental reports, details are also given of whether or not such reports are verified externally. Information is also provided on the sources of guidance used by companies in preparing environmental disclosures as well as the stakeholders that are consulted. Sectoral differences are reported, where appropriate, for all aspects that are considered. Copyright

Teaching OR/MS to MBAs at Warwick business school: a turnaround story

OR/MS is under pressure in MBA programs in the United Kingdom as it is in the United States. To ensure its continuance, members of the operational research group at Warwick Business School redesigned the core OR/MS module. The first attempt at a redesign was a failure. As a result, the module was redesigned again. The second version was a success. Through this process, we have learned many lessons about teaching OR/MS to MBA students, among them the need to have a guiding philosophy, adopt a critical-consumer approach, stress managerial relevance, discuss the context and process of modeling as well as content, and use spreadsheets for analytical work.

The use and importance of financial appraisal techniques in the IS/IT investment decision-making process—recent UK evidence

Although the literature on capital investment appraisal techniques (CIAT) acknowledges a heterogeneity in appraisal methods, it fails to consider adequately the possible implications of the heterogeneity of the objects of appraisal. Here the use of CIAT is examined for appraising a particular type of investment—information systems/information technology (IS/IT). The results of a survey investigating appraisal practices of a sample of the top 1000 UK companies are presented and discussed. The extent to which CIAT are used to appraise the financial feasibility of IS/IT investments is determined, while drawing comparisons with findings in the accounting and finance, and IS/IT literature. The importance of the techniques is identified, and the particular problems associated with their use in IS/IT investments, including those related to knowledge and information problems.

An International Comparison of Management's Use of Quantitative Techniques, and the Implications for MBA Teaching

In order to assess the extent to which managers use a range of statistical techniques, an identical survey was undertaken among over 1200 MBA graduates in the United Kingdom, South Africa, and New Zealand. The managers in all three countries held similar perceptions about both the benefits and hindrances of applying the particular quantitative techniques mentioned, and these are detailed in the paper. Although the overall awareness of basic techniques was disappointingly low, the research indicates that most managers saw a positive role for quantitative techniques in their work. Clear implications for the design and teaching of the quantitative component in MBA courses can be drawn from the study.