Evaluating Implementation Schedules for Investments in Strategic Information Technologies: Framework and Application to Edi
20 Pages Posted: 31 Oct 2008
Date Written: August 1989
We develop a framework based on "project networks" and net present value analysis in order to help managersevaluate investments in infrastructural and strategic information systems that require significant amounts of time andmoney to implement. The framework, which we term "value networks", supports decomposition of investmentprojects into separate increments, offers a means to represent crucial dependencies that affect the creation of ITbusiness value, and provides a basis for developing a measurement methodology which can be used from theplanning through the implementation stages. This enables the user to identify the implications of choosing amongdifferent implementation schedules. We illustrate these ideas by examining how our framework can used to evaluateinvestments in Electronic Data Interchange (EDI) and Cash Management Systems (CMS).
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