A model for investment justification in information technology projects

To remain competitive and ever increasingly sophisticated in the marketplac e, businesses must invest in Information Technology (IT) if they are to sur vive in the long-term. Advances in IT have enabled new competitors to enter existing markets more readily, which has stimulated and strengthened the p aradigm of global competitiveness. At the same time, increasing economic pr essures are forcing businesses to reevaluate their IT operations. In respon se to the changing business environment and to remain competitive and impro ve organisational performance some businesses have strategically made consi derable investments in IT, yet their benefits are difficult to quantify. Wi th this in mind, this paper aims to study the justification for investment in IT projects, by examining tangible and intangible benefits such as compe titive advantage and securing future business by facilitating appropriate m anagement change. A model to determine whether or not to invest in IT for a ny given company is presented. The developed model is then applied to a cas e study to analyse the implications of implementing IT and its impact on or ganisations. (C) 2001 Elsevier Science Ltd. All rights reserved.