Abstract

Traditional cost/benefit analysis is used extensively by organizations to compare alternatives and to make IT investment decisions. The objective is to select the project that maximizes the net present value of all benefits minus all costs. A major contribution of this study is expected to be the discovery of intangible benefits that IT investment decision-makers fail to include in their decision processes. The impact of the intangible benefit of process redesign is examined in the context of certain benefit factors. Organizations that pay close attention to the identification and measurement of value derived from IT investments (both tangible and intangible) are expected to obtain greater productivity from those IT investments that lead to business success.

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