A Multi-Objective, Multi-Criteria Approach for Evaluating IT Investments: Results from Two Case Studies

Information Resources Management Journal

Volumn 17, Issue 1, 2004, Pages 37-62

  Kearns, Grover S ^a  

^a UNIVERSITY OF SOUTH FLORIDA   (United States)

Author keywords

Analytic hierarchy process; Information technology investments; Strategic information systesms planning

Indexed keywords

COMPETITION; DECISION MAKING; INVESTMENTS; MANAGEMENT INFORMATION SYSTEMS; STRATEGIC PLANNING;

DISCOUNTED CASH FLOWS (DCF); PORTFOLIO SELECTION; STRATEGIC INVESTMENTS;

INFORMATION TECHNOLOGY;

EID: 0345548379     PISSN: 10401628     EISSN: None     Source Type: Journal    
DOI: 10.4018/irmj.2004010103     Document Type: Article

References (51)

1. Arbel, A. (1993). A weighted-gradient approach to multiobjective linear programming problems using the analytic hierarchy process. Mathematical and Computer Modeling, 17 (4-5), 27-40.
2. Bacon, J.C. (1992). The use of decision criteria in selecting information systems/technology investments. MIS Quarterly, 16(3), 335-354.
3. Basu, V., Hartono, E., Lederer, A., & Sethi, V. (2002). The impact of organizational commitment, senior management involvement, and team involvement on strategic information systems planning. Information & Management, 39, 513-524.
4. Brynjolfsson, E., & Hitt, L. (1995). Information technology as a factor of production: The role of differences among firms. Economics of Innovation and New Technology, 3(4), 183-200.
5. Brynjolfsson, E., & Hitt, L. (1998). Beyond the productivity paradox. Communications of the ACM, 41(8), 49-55.
6. Cavaye, A. (1996). Case study research: A multi-faceted research approach for IS. Information Systems Journal, 6, 227-242.
7. Chan, Y.L., & Lynn, B.E. (1993). Hierarchical analysis as a means of evaluating tangibles and intangibles of capital investments. MidAtlantic Journal of Business, 29(1), 59-74.
8. Chan, Y.E. (2000). IT value: The great divide between qualitative and quantitative and individual and organizational measures. Journal of Management Information Systems, 16(4), 225-261.
9. Compass Group (1998). The COMPASS World IT Strategy Census 1998-2000. Rotterdam: Compass Publishing.
10. Compass Group (1999). The COMPASS International IT Strategy Census 1999. Rotterdam: Compass Publishing.
11. Clemons, E.K., & Weber, B.W. (1990). Strategic information technology investments: Guidelines for decision making. Journal of Management Information Systems, 7(2), 9-28.
12. Das, S.R., Zahra, S., & Warkentin, M. (1991). Integrating the content and process of strategic MIS planning with competitive strategy. Decision Sciences, 22, 953-984.
13. Dewan, S., & Kraemer, K.L. (1998). International dimensions of the productivity paradox. Communications of the ACM, 41(8), 56-62.
14. Driscoll, D.A., Lin, W.T., & Watkins, P.R. (1984). Cost-volume-profit analysis under uncertainty: A synthesis and framework for evaluation. Journal of Accounting Literature, 3, 85-112.
15. Expert Choice™ Version 8, Expert Choice, Inc.: The Decision Support Software Company, Pittsburgh, PA.
16. Finnie, G.R., Wittig, G.E., & Petkov, D.I. (1993). Prioritizing software development productivity factors using the analytic hierarchy process. Journal of Systems & Software, 22(2), 129-139.
17. Hamalainen, R.P., & Seppalainen, T.O. (1986). The analytic network process in energy policy planning. Socio-Economic Planning Sciences, 20(6), 399-405.
18. Hammer, M. (1991). Reengineering work: Don't automate, obliterate. Harvard Business Review, September-October, 104-112.
19. Hu, O. (2001). An empirical study of the causal relationship between IT investment and firm performance. Information Resources Management Journal, 14(3), 15-26.
20. Imber, S.E. (1990). Application of linear programming and the analytic hierarchy process to fisheries management. University of Maryland at College Park.
21. Irani, Z. (1998). Investment justification of information systems: a focus on the evaluation of MRPII. PhD Dissertation, Department of Engineering Systems, Brunel University, UK.
22. Kamal, M. (2001). Application of the AHP in project management. International Journal of Project Management, 19, 19-27.
23. Kaplan, R.S. (1991). New systems for measurement and control. The Engineering Economist, 36(3), 201-218.
24. Kauffman, R.J., & Kriebel, C.H. (1998). Modeling and measuring the business value of information technologies. In P. Strassmann, P. Berger, B. Swanson, C. Kriebel, and R. Kauffman (eds.), Measuring the Business Value of IT. Washington, DC: ICIT Press.
25. Kayworth, T., Chatterjee, D., & Sambamurthy, V. (2001). Theoretical justification for IT infrastructure investments. Information Resources Management Journal, 14(3), 5-14.
26. Koksalan, M.M., & Sagala, P.N. (1995). Interactive approaches for discrete alternative multiple criteria decision making with monotone utility functions. Management Science, 41(7), 1158-1176.
27. Lauro, G.L., & Vepsalainen, A. (1986). Assessing technology portfolios for contract competition: an analytic hierarchy process approach. Socio-Economic Planning Sciences, 20(6), 407-415.
28. Lee, H. (1993). A structured methodology for software development effort prediction using the analytic hierarchy process. Journal of Systems & Software, 21(2), 179-186.
29. Liberatore, M.J., Monahan, T.F., & Stout, D.E. (1992). A framework for integrating capital budgeting analysis with strategy. Engineering Economist, 38(1), 31-43.
30. McDonagh, J., & Coghlan, D. (1999). Can O.D. solve the IT dilemma? O.D. in IT-related change. Organization Development Journal, 17(4), 41-47.
31. McKeen, J.D., & Guimaraes, T. (1985). Selecting MIS projects by steering committee. Communications of the ACM, 28(12), 1344-1352.
32. Mullen, R. (2001). Tallying the return on IT Investment. Chemical Week, 163(25), 29-30.
33. Papadakis, V.M. (1995). The contribution of formal planning systems to strategic investment decisions. British Journal of Management, 16, 15-28.
34. Powell, P. (1992). Information technology evaluation: is it different? Journal of the Operational Research Society, 43(1), 29-42.
35. Ramanathan, R., & Ganesh, L.S. (1995). Using AHP for resource allocation problems. European Journal of Operational Research, 80, 410-417.
36. Saaty, T.L. (1977). A scaling method for priorities in hierarchical structures. Journal of Mathematical Psychology, 15, 234-281.
37. Saaty, T.L. (1980). Portfolio selection through hierarchies. Journal of Portfolio Management, 16-21.
38. Saaty, T.L. (1987). Concepts, theory, and techniques: rank generation, preservation, and reversal in the analytic hierarchy decision process. Decision Sciences, 18, 157-177.
39. Saaty, T.L. (1990). How to make a decision: The analytic hierarchy process. European Journal of Operational Research, 48, 9-26.
40. Saaty, T.L. (1994). Highlights and critical points in the theory and application of the analytic hierarchy process. European Journal of Operational Research, 74, 426-447.
41. Santos, B.D., & Sussman, L. (2000). Improving the return on IT investment: the productivity paradox. International Journal of Information Management, 20, 429-440.
42. Sarkis, J., & Sundarraj, R.P. (2001). A decision model for strategic evaluation of enterprise information technologies. Information Systems Management, 18(3), 62-72.
43. Sircar, S., Turnbow, J.L., & Bordoloi, B. (2000). A framework for assessing the relationship between information technology investments and firm performance. Journal of Management Information Systems, 16(4), 69-97.
44. Stout, D. E., Liberatore, M., & Monahan, T.F. (1991). Decision support software for capital budgeting. Management Accounting, July, 50-53.
45. Sylla, C., & Wen, H.J. (2002). A conceptual framework for evaluation of information technology investments. International Journal of Technology Management, 24(2/3), 236-261.
46. Thurston, D.L., & Tian, Y.Q. (1993). Integration of the analytic hierarchy process and integer programming with linear constraints for long range product planning. Mathematical and Computer Modeling, 17 (4-5), 41-54.
47. Vargas, L.G. (1990). An Overview of the analytic hierarchy process and its applications. European Journal of Operational Research, 48, 2-8.
48. Wedley, W.C. (1990). Combining qualitative and quantitative factors - An analytic hierarchy approach. Socio-Economic Planning Sciences, 24(1), 57-64.
49. Weill, P., & Olson, M.H. (1989). Managing investment in information technology: Mini-case examples and implications. MIS Quarterly, 13(1), 3-16.
50. Westland, J.C. (2002). The cost of errors in software development: evidence from industry. The Journal of Systems and Software, 62, 1-9.
51. Zahedi, F. (1986). The analytic hierarchy process - A survey of the method and its applications. Interfaces, 16(4), 96-108.