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IT Appraisal Methods and Methodologies- A Critical Literature Review

IT Appraisal Methods and Methodologies- A Critical Literature Review
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Author(s): Volker Stix (Vienna University of Economics and Business Administration, Austria) and Juergen Reiner
Copyright: 2004
Pages: 4
Source title: Innovations Through Information Technology
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59140-261-9.ch011
ISBN13: 9781616921255
EISBN13: 9781466665347

Abstract

The appraisal of IT investments has been a recognized problem for years, with the result that dozens of evaluation methods have been suggested by research. Despite these proposed methods, the IT valuation challenge remains unsolved in many aspects. This paper gives an overview of important method categories, and describes the evolving class of methodologies that matches particular methods with specific investment situations. While methodologies address aspects of the decision process and organizational context of an investment, critical issues remain with regard to the long-term, “enabling” nature of IT investments and the corresponding identification of required input parameters. In particular, the appraisal of IT infrastructure transformation investments is highly dependent on finding a solution for these remaining issues.

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