A Review on Methods for the Assessment of Information System Projects

Özturan, Meltem; Basarir-Ozel, Birgul; Akar, Ezgi

doi:10.7251/jit1502117o

Cited by 4 publications

(2 citation statements)

References 45 publications

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“…Although some methods fall between multiple categories, all can be assigned to their predominant category. Ozturan et al [16] examine over 50 academic articles and classified IS/IT investment assessment methods used in those studies into three categories as financial, non-financial, and hybrid. They find that although financial methods are more frequently used than non-financial methods, there is an increasing trend in the use of non-financial methods due to a tendency towards strategic and intangible benefits of IT.…”

Section: Introductionmentioning

confidence: 99%

An empirical analysis on the effects of investment assessment methods on IS/IT project success

Özturan

Gursoy

Çeken

2021

IJISPM

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As organizations’ investments on information systems/information technology (IS/IT) increase, the assessment methods used during IS/IT investment decision-making process holds more and more importance. Since successful IS/IT projects are key to the sustainability of an organization, identifying the factors which have effects on project success carries useful insights. In this study, 18 assessment methods are identified based on the literature. A novel classification method is proposed and assessment methods are classified into financial, strategic, and organizational categories. A novel rule-based method for determining the size of IS/IT projects is also proposed. Detailed information on project characteristics, employed IS/IT assessment methods, and project success is collected for 110 real-world IS/IT projects. The collected data is utilized in ANOVA and Regression tests to examine the factors which affect project success. Use of organization-related assessment methods, which is proposed in this study, is found to increase the success rate of the projects. Obligation towards the project and use of multi-criteria methodology have significant relationships with project success whereas project size, use of gut feeling during evaluation, and employed system developmentmethodology do not have statistically significant impacts on project success.

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Section: Introductionmentioning

confidence: 99%

An empirical analysis on the effects of investment assessment methods on IS/IT project success

Özturan

Gursoy

Çeken

2021

IJISPM

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“…In the past decades, the body of literature has already provided comprehensive overviews of available methods and techniques for the appraisal of IT and IS investments (Irani and Love, 2002;Ozturan et al, 2016;Renkema and Berghout, 1997;Walter and Spitta, 2004). From these works, it can be inferred that formal-rational approaches focusing on the financial appraisal of the investment constitute a major portion of the field (Irani and Love, 2002;Walter and Spitta, 2004).…”

Section: Introductionmentioning

confidence: 99%

Integrating system dynamics and VoFI for the dynamic visualization of financial implications arising from IT and IS investments

Oesterreich

Teuteberg

2019

JM2

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Purpose Despite the advantages that the VoFI approach offers compared with traditional capital budgeting methods, its application for the appraisal of information technology (IT) and information systems (IS) investments in both research and practice is not widespread to date. Given the static nature of the generic VoFI table, the method reaches its limits in its financial plan form because it is unable to investigate the dynamic behaviour of complex investment calculations. To date, there has been no attempt to address these shortcomings to advance the use of VoFI as a useful and valid capital budgeting method in finance and accounting. Therefore, the purpose of this study is to address this research gap and aim at developing a ‘dynamic’ VoFI model that integrates all input variables and target measures of a VoFI table and visualises the causal relationships among these variables. Design/methodology/approach The ‘dynamic’ VoFI model is developed through System Dynamics (SD) modelling to enhance the strength of the VoFI concept as an instrument for visualising the financial implications of investments in IT and IS at the corporate level. Case study research is used as a research method to study the behaviour of the developed model. The validity of the model is demonstrated by conducting simulation runs in Vensim software. In addition, probabilistic sensitivity analyses are performed to account for the impact of uncertainty on the main model variables. Findings The results demonstrate the usefulness of SD modelling for extending the generic VoFI concept by integrating risk analyses and providing a new strategy of data analysis and data presentation different from the typical financial plan form. Furthermore, the dynamic VoFI model enables the visualisation of interdependencies among the various variables incorporated in the VoFI financial plan, which significantly enhances the conceptual understanding of the investment and its financial consequences. Originality/value The integration of the VoFI concept into an SD model helps researchers and practitioners to enhance their conceptual understanding of this method. This thus increases its acceptance and popularity as a practical capital budgeting method, especially for the financial assessment of IT and IS investments. The VoFI model proposed in this paper should also enable analysts and decision makers to become more conscious of the interdependencies between the assumptions made for an appraisal and the quantitative results.

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Why one big picture is worth a thousand numbers: measuring intangible benefits of investments in augmented reality based assistive technology using utility effect chains and system dynamics

Oesterreich

Teuteberg

2017

Inf Syst E-Bus Manage

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A Review on Methods for the Assessment of Information System Projects

Cited by 4 publications

References 45 publications

An empirical analysis on the effects of investment assessment methods on IS/IT project success

An empirical analysis on the effects of investment assessment methods on IS/IT project success

Integrating system dynamics and VoFI for the dynamic visualization of financial implications arising from IT and IS investments

Why one big picture is worth a thousand numbers: measuring intangible benefits of investments in augmented reality based assistive technology using utility effect chains and system dynamics

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