When should the value of IS investments be measured quantitatively/ qualitatively?

18 Nov

As many of the previous bloggers such as sully1210 and kechi4me have already explained, what I will say is that I agree with each one of them. In my part I will add that benefits of the information system in tangible form can be analysed quantitatively while the benefits in intangible have to be analysed qualitatively. Like the efficiency of the project can be analysed quantitatively, but the second stage of the effective project has to be analysed qualitatively.

An information system sometimes plays an integral role in implementing the strategies of the business like development of new products, new services or new business altogether. Thus, information system helps in achieving the strategic goals of the company. An information system can help in supporting the existing business strategy by providing the competitive edge and new opportunities. It can also help to reengineer the business by cutting the costs and help to provide better services and products, these can be analysed qualitatively except the cost part. Information systems can be analysed in terms of strategic value, risk and financial profitability. The output of information systems can be analysed by seeing the success of the information development and success of information system usefulness.

The objectives attained can be tangible i.e. in terms of monetary benefits and can be intangible. The intangible objectives can be operational, special and general capability objectives. Operational objectives would involve the enhancements and the positive changes in the activities relating to the operations of the company. Special objectives would be related to objectives which are not directly related to the output of the company like auditing, changes of tax.

General capability objectives can be seen as the need to process the information before actual requirement. In my opinion, the critical value of IS to an organisation is the manner in which it affects business processes in line with the organisation’s strategy.

I believe the value of IS investment should be measured both during the implementation process and post implementation period.


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