A multi-criteria model for the justification of IT investments

Abstract:

Investments in Information Technology (IT) are in essence strategic decision processes. However, many decision makers, given the complexity of their problems, end up by either reducing them to an approach that is usually monetary to the detriment of those possibly related to strategic benefits associated with IT. This fact is a consequence of the lack of supportive decision tools to capture all the multiple aspects involved in the justification of IT investments. The Operations Research/Management Sciences can aid that process through the development of multi-criteria models, seeking to contemplate the simultaneously tangible and intangible aspects usually associated with this type of investment. In this sense, this paper presents the development of a multi-criteria decision-making model for the justification of IT investments, offering a validated minimal set of attributes that form the basis to formulate AHP models for specific IT justification problems. The implementation of the model was accomplished with the Analytic Hierarchy Process (AHP) method, using the Team Expert Choice™ software. The model was validated through its submission to twenty specialists in the area and through its application in real decision problems. The results obtained in the validation show both the generality and the potential of the model as a decision tool in the process of justifying IT investments.

Año de publicación:

2005

Keywords:

• IT Investments
• Multi-criteria analysis
• AHP
• Intangible Benefits
• IT Justification

Fuente:

scopus