Strategic Information Technology Investments: Guidelines for Decision Making.

Author List: Clemons, Eric K.; Weber, Bruce W.;
Journal of Management Information Systems, 1990, Volume 7, Issue 2, Page 9/28/2017.
As the strategic importance of information technology (IT) has increased, the decision of where and when to allocate resources to IT programs has become more risky and more difficult. Executives are tempted by the opportunities for strategic impact, but struggle with the massive expenditures and uncertainties involved. Evaluating the opportunity afforded by a system and judging its strategic impact in advance have proven difficult, and even when analyses are performed well, they are frequently done on an ad hoc basis. IT can confer advantage under appropriate conditions, and equally important, even when it fails to confer advantage, it may still prove crucial. Both concepts--competitive advantage and strategic necessity--confound traditional financial analysis. We offer seven principles on which to base an evaluation of a strategic IT venture. Although we have not performed a statistically validating study, these principles are expressed as guidelines we believe to be true, based on experience. The guidelines range from modeling the investment decision, through managing risk, to preparing for unanticipated upside and downside implications.
Keywords: information systems for strategic advantage; investment in information systems; risk assessment for information system projects
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List of Topics

#36 0.281 competitive advantage strategic systems information sustainable sustainability dynamic opportunities capabilities environments environmental turbulence turbulent dynamics key quest create sustained ability
#271 0.114 technology investments investment information firm firms profitability value performance impact data higher evidence diversification industry payoff return findings decisions greater
#125 0.095 framework model used conceptual proposed given particular general concept frameworks literature developed develop providing paper developing guidelines concepts appropriate set
#145 0.089 differences analysis different similar study findings based significant highly groups popular samples comparison similarities non-is variety reveals imitation versus suggests
#157 0.088 evaluation effectiveness assessment evaluating paper objectives terms process assessing criteria evaluations methodology provides impact literature potential important evaluated identifying multiple
#264 0.061 risk risks management associated managing financial appropriate losses expected future literature reduce loss approach alternative mitigate failures failure cause mitigation
#177 0.058 decision accuracy aid aids prediction experiment effects accurate support making preferences interaction judgment hybrid perceptual strategy account context restrictiveness taking