The Value And Impact Of Information Technology Investments And The Implications Of Those Investments For Effective Management Of The Information Systems Organization

Running Head : knowledge engineering science Investments culture Technology InvestmentsIntroductionOrganizations score extended enthronisations in implementing IT systems . IT installations has become necessary to clarified and big compositions , now than the in the last decade . hitherto grammatical case and level of IT enthronement depends on the shield of organisational operations . The large organizations ar much victimisation the study engineering science and also they are spend much on training technology as a percentage of their revenues than smaller companies (Mitra , Sabyasachi and Chaya , Antoine Karim . Although the private IT enthronizations depend on organizational strategic and economic action , they are also signifi launch the gatetly related to group mathematical process of the organization . thus far , though there are more signifi tail endt benefits of IT coronations in an organization , deciding on the chastise size of calculate and ROI is not that much easyInformation Technology projects are organizational investments that ask positive returns (Applegate et al ,1996 . Hu and Plant (2001 ) cited in Sam Lubbe , designate that the promise of increased advantage was the impetuous force back tooth large-scale investment in IT since the 1970 sSo development technology investment is just like any some other(a)(a) capital pulmonary terabit , and take ins to concentrate on refractory , variable cost and expected judge of return . They advert that an organization s IT projects should be considered as an investment portfolio that balances risk and rates of return . Managers need to understand and analyze the decision of investment on cultivation technology like any other major investment . The investments in selective breeding technology (IT can im turf out the surgical operation the organization! if managed wisely (U .S Accounting and Information Management part , 2000 . This statement notifies that IT investment needs searing skills or intelligence to base it effective .

Following can be some of the risks in IT investments :The Changing demands of the organization whitethorn not be pleasant by the older IT systems , so needs constant up gradation and recurring investmentsAll the shelf products may not be suitable to the organizational actual needs , and requires customized developments or patches , which may result risky and costlyFrequently IT projects show the problem of cost overruns and instrument slippages which may result short to cope with existing operationsThe o ther concerns for the managers while making a decision on IT investment areto demonstrate the value of IT deliverables to the organization and how they promote the business strategyto prove the IT effectiveness by advance sourcing and managing of IT servicesto make the practices always earn for the regulatory requirementsto prove the shelter and controlsto reduce unnecessary spendGreen and Jenkins (1998 ) feature identified four factors that button up the developmentof successful information technology plans the reverse to develop asset management plans for information technology , the tribulation to develop a life-cycle approach to budgeting , the failure to match information technology expenditure with major income sources and the failure to develop benchmarks for return on investment in information technologyThe decision of investment in Information technology (IT ) includes two financial and technological issues . Also reckon the Return on Investment (ROI ) of...If you want to get a full essay, order it on our website: OrderEssay.net

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