A Framework for Assessing the Business Value of Information Technology Infrastructures.

Author List: Kumar, Ram L.;
Journal of Management Information Systems, 2004, Volume 21, Issue 2, Page 11/1/1932.
Information technology (IT) infrastructure investments are an extremely important part of e-business and constitute a major portion of IT investments in many organizations. IT infrastructure investments include investments in connectivity, systems integration, and data storage that may be used by multiple applications. Prior research has recognized the importance of a flexible IT infrastructure as a source of competitive advantage. Evidence regarding the value of IT infrastructures is anecdotal, and there is a realization that large investments in IT infrastructures are often difficult to justify. This paper expands on the idea that the value of an IT infrastructure depends on its use in an organizational context, and presents a relatively simple approach to understanding and assessing the value of IT infrastructure investments. This approach is based on the asset valuation literature in finance. An example is provided to illustrate the proposed approach, and managerial implications are discussed.
Keywords: asset valuation; business value; economic analysis; IT infrastructure
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#143 0.219 value business benefits technology based economic creation related intangible cocreation assessing financial improved key economics assess question created create understanding
#271 0.152 technology investments investment information firm firms profitability value performance impact data higher evidence diversification industry payoff return findings decisions greater
#16 0.140 infrastructure information flexibility new paper technology building infrastructures flexible development human creating provide despite challenge possible resources specific advances developing
#44 0.137 approach analysis application approaches new used paper methodology simulation traditional techniques systems process based using proposed method present provides various
#88 0.091 managers managerial manager decisions study middle use important manager's appropriate importance context organizations indicate field experience management major organizational results
#127 0.074 systems information research theory implications practice discussed findings field paper practitioners role general important key grounded researchers domain new identified