Managing Investment in Information Technology: Mini Case Examples and Implications
Authors: Weill, Peter; Olson, Margrethe H.
Journal: MIS Quarterly (1989)
DOI: 10.2307/248694
<jats:p>While businesses are investing enormous resources in information technology (IT), there is little evidence linking IT investment to organizational performance. The purpose of this article, therefore, is to increase understanding of the basis for IT investment in firms. Six mini case studies of companies in five different industries address questions of how they define IT for the purpose of determining the level of investment, how they track IT investments, and what other factors influence IT investment decisions.</jats:p> <jats:p>Each organization uses a different definition of IT, but there appears to be an overall trend to broaden the definition. Although companies track IT investment with varying degrees of rigor, they appear to be generally moving toward centralized tracking of all IT investment Political considerations are important and significantly impact investment decisions. In all cases, the effectiveness with which IT investment is converted to useful output is acknowledged to be affected by the implementation process, the culture of the organization, and the skill of management.</jats:p> <jats:p>Three major implications for practitioners responsible for IT inve…