For What IT's Worth: Insights into the True Business Value of IT

摘要

The value of IT is a much discussed and often misunderstood subject. This paper aims to add new insight to the discussion by providing a practical grid in understanding the impact of IT investments on the organization and by showing the conceptual relationships between IT value and business strategy and functions. In its use of the latest developments in financial theory this paper hopefully develops a more complete framework for the valuation of IT projects. This framework warns about rushing into possibly wrong decisions about IT investments based on incomplete calculations of value. Unfortunately we are far away from a simple and easy-to-under-stand calculation method unveiling the complete and true value of any investment. For this reason company executives should focus their attention on creating a thorough understanding of how an investment in IT impacts the business of the organization, instead of focus on oversimplified value calculations based on questionable assumptions. That's what ITs worth!