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The Financial Appraisal Profile (FAP) Model for Evaluation of Enterprise-Wide Information Technology: A Case Example
Abstract
Enterprise-wide information systems adoption by organizations has become common place. Even with the benefits offered by such systems, there have also been many failures. One of the important reasons for these failures is inappropriate project evaluation and selection. In order to reduce the level of project failures, we introduce an innovative methodology, the financial appraisal profile (FAP) model, which seeks to address some of the issues and limitations posed by standard appraisal and evaluation approaches for strategic technologies and programs. By making the right decision in the first place and involving senior managers in the appraisal process, the organization will be better placed to achieve project success. The adoption of a management team approach to investment appraisals will not only enhance the information base but will also result in greater managerial commitment to a project. We believe by adopting the FAP model greater awareness to strategic issues and goals will also be achieved, which should lead to a more focused top management team—with all members pulling in the same direction.
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