Is IS evaluation different to evaluation of other investment

Solution to - Is IS evaluation different to evaluation of other investment - According to Dressel (1976), "an evaluation is both the worth or impact of a program, procedure, or individual, and the process whereby judgment is made."There seems be an acceptance both in practice and in literature that evaluation of information systems investments is inherently different to evaluation of other investments within organisations. (Powell)The evaluation of information systems is extremely difficult and is different to the evaluation of other investments simply because the usual cost/ benefit evaluations used in evaluating other investments (for example marketing and branding), will not work in the area of information systems.

This is because cost/benefit analysis fails to capture the intangible benefits of information systems as a whole.An investment of a new computer information system within a company may for example produce an intangible benefit of better employee morale, thus contributing to retention of talent, more innovative ideas and overall improved customer satisfaction. However if evaluating solely on the cost benefits of an information system, there is no way to directly translate improved employee morale into revenue outcomes, even though overall employee morale will have an impact on a company's revenue (The Houston Chronicle). Today, more than 25% of the value of many companies is based on intangible assets (including information systems investments) and the need to evaluate the intangible benefits of information systems is crucial (CIO).According to Curley [2005] "Even when there is no reduction in cost, significant benefits can be realized in projects that enhance customer loyalty, open up new business opportunities, or increased productivity." When evaluating IT projects, by including the intangible benefits of the project in the evaluation, a better understanding of the true value of the project will emerge (Oliver, 2007).The intangible benefit of information systems is what makes them stand out, and makes the need for their evaluation to be different from the evaluation of more tangible investments.Do others think that the evaluation of information systems is different to other large investments? 

   Related Questions in Biology

  • Q : Stomach what is the ph inside the

    what is the ph inside the stomach? why is the need to keep that PH level?

  • Q : Type of defense cell in inflammation

    Explain that what type of defense cell make bacteria attract and origin to multiply in the inflammation process? Specified the name given to the waste material made by the inflammation activated by bacterial infection?

  • Q : Define Backbone Backbone : It is a

    Backbone: It is a larger transmission line which carries data gathered from smaller lines which interconnect with it. 1) At local level, a backbone is a line or set of lines which local area networks join to for a

  • Q : Disease caused by the deficiency of

    Name the disease caused by the deficiency of dietary iodine? Answer: Iodine deficiency causes hypothyroidism, an unusually lower production of the thyroid hormones w

  • Q : Hypophysis-corpus luteum How does

    How does hypophysis-corpus luteum negative feedback work? Specify the name that is given to atrophied corpus luteum after this feedback process?

  • Q : International Arena - Organizational

    A final major reason for the emerging challenge of diversity is that more and more organizations are entering into international arena. A natural by-product of going international is increased diversity, in this case cultural diversity. Of domestic organizations have and promote diversity then, a

  • Q : Blastopore and archenteron Explain the

    Explain the blastopore and archenteron? Which is the stage of embryonic development where these structures are formed? Specify the destinations of archenteron and of blastopore?

  • Q : Single umbilical artery and ctev

    35-year old second gravida with single umbilical artery and ctev (club foot)?

  • Q : Perceptual Distortion - Organizational

    This occurs because of attribution on two counts: I. Fundamental attribution error: the tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others. II. S

  • Q : Describe Human Resources Human

    Human Resources (HR): Each and every organization has people that mean all organization requires Human Resources (HR) professionals. HR aids manage and develop the people in an association. Sometimes termed as "Personnel" or "Talent Management," HR is

©TutorsGlobe All rights reserved 2022-2023.