Business Value Creation from IT Investments: towards a process theory of IT governance

Peter Marshall, Judy McKay, Adi Prananto

Abstract


The history of Information Systems (IS) as a discipline has been accompanied by vigorous debate on how, and indeed whether, IT investments contribute to improving organisational performance and hence in delivering value to the organisation. A number of models have been put forward to describe the relationship between IT expenditure and business value. This paper considers one such model, the process model of Soh and Markus (1995), and although this model has many attractive features, it is perhaps deficient in the way in which it links IT investment proposals back to business objectives, drivers and requirements. A modification of this model is thus proposed, and empirically assessed through qualitative interviews with CIOs in large organisations to understand the practises and processes by which they assert that business value is achieved through IT investments. The modified model was largely supported by the empirical study, but an additional factor, that of the need for and importance of sound IT governance processes and procedures to be in place if business value is to be derived form IT expenditure.

Keywords


value; investment; model; interview; qualitative; governance

Full Text:

PDF


DOI: http://dx.doi.org/10.3127/ajis.v12i2.91

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Creative Commons License
ISSN: Online: 1326-2238 Hard copy: 1449-8618
This work is licensed under a Creative Commons Attribution-NonCommercial Licence. Uses the Open Journal Systems. Web design by TomW.