Research Workshop

Evaluation of Information Technology Investments

October 16, 2003
8:30 AM - 1:00 PM, Speakman Hall 318 (Carzo Room)
Fox School of Business and Management
Temple University

David Schuff, Workshop Chair
Download the flyer here (PDF format)

Click here for the workshop program

Workshop Summary

Overview

Despite a global economic slowdown and the recent troubles plaguing the technology sector, Information Technology spending remains a significant component of an organization’s expenses. However, there is continued debate about the best way to assess these investments. The inherent difficult in correctly assessing the value of IT is reflected by the “productivity paradox,” where technology investments do not appear to yield significant increases in output, and by the notion of Total Cost of Ownership, where the initial investment only accounts for a small portion of overall costs. The “social costs” of Information Technology, or the way in which a technology can influence the workplace, has also been considered as a way of evaluating investments in IT.

Results

The half-day research workshop covered a variety of topics. Some of those topics were the assessment and measurement of IT project success, the link between technology and firm performance, realizing the benefits of IT investment, and the cost implications of software customization and the use of open source software. Research faculty at the Fox School of Business, Villanova University, and Lehigh University presented their work, joined by invited commentator Nicholas Economidis, Assistant Vice President of AIG eBusiness Risk Solutions. Each participant's presentation consisted of a brief overview of their idea, followed by a discussion  focusing on ways to refine their research going forward.

One common theme that emerged from the group discussion was the need to determining concrete, reliable metrics for the assessment of the true costs and benefits of technology investments. A potential solution suggested was to use managerial perceptions of benefits, while others suggested using a simplified model with easily measurable variables (i.e., lines of code) to provide an reasonable estimate of true costs.

Goals of the Workshop

The goal of the IBIT Workshop Series is to provide an informal setting in which to present and discuss important research issues for future work and explore opportunities for collaboration. Presentations are kept short to allow time for discussion.

Potential Topics

The following are a list of potential topics. Topics not listed here but related to the theme of the workshop are welcome.

• Financial evaluation of IT investments
• Models to explain investment behavior
• Evaluating risk versus return for information technology investments
• Effects of IT investments on an organization’s social structure
• Evaluating productivity resulting from technology
• Metrics for costs and benefits of IT investments

Format of Submissions

Submissions (in the style of a “position paper”) should be no more than two single-spaced pages (using Times Roman 12 point font). This includes a brief abstract and an overview of the basic concepts of the program of research. Specific formatting is up to the author, although a bullet-point style would be most effective, highlighting new ideas, models, and the theoretical background.

Please submit your position paper by email to David Schuff by Friday, August 1, 2003. You will be notified about the decision of the program committee by Tuesday, September 2, 2003.

Publication

The proceedings of the workshop will be published as part of the official working papers series of the Institute for Business and Information Technology. You will also be eligible to apply for seed funding from the Institute for Business and Information Technology.

For more information, contact David Schuff (David.Schuff@temple.edu).