The IT Evaluation and Benefits Management Life Cycle

Abstract

It appears that somewhat of a dichotomy exists in many contemporary organisations with respect to the question of investment in information and particularly in information technology (IT). On the one hand, discussions of the new information-based economy and the promise of the new e-business domain leads inevitably to enormous faith being placed in IT, or perhaps more accurately, on the critical, appropriate utilisation of IT to deliver business benefits. Such faith is illustrated by quotes such as: “Across all industries, information and the technology that delivers it have become critical, strategic assets for business firms and their managers” (Laudon and Laudon, 2000). But such enthusiasm is tempered by another view or concern that IT is not delivering on its promises, that it is “oversold and undelivered” (Earl, 1994), and that demonstrating the business value of IT investment is difficult in many instances. This concern that managers do not perceive that they are deriving value for money when it comes to IT investments is troubling when information and IT are often presented as the very backbone of the new economy. Such cynicism is reflected in quotes such as: “There are many different ways to ruin a company. Speculation is the fastest, IT is the most reliable” (Kempis et al., 1999).