This master thesis concerns the problems of IS/IT evaluation. IS/ITevaluation can be viewed as a part of a justification process for investingin IS/IT. Traditionally these evaluations have been performed with atechnical or economical approach, focusing on efficiency and productivityexpressed in quantitative measures. However, having these approachesincreases the risk of not understanding the different social interpretativevalues of a system. In the light of this, the productivity paradox hasevolved; showing fairly static productivity and rising IS/IT expenditures. Atthe same time more and more businesses get reliant on IS/IT.Researchers talks here about a need to extend the management’s view ofhow to evaluate their investments.This study is an attempt to create a deeper understanding on howbusiness benefits can be evaluated when investing in new technology.The study has an interpretative approach, aimed to create anunderstanding for how benefits from concept of Virtual Manufacturing canbe evaluated in the justification phase of an investment. VirtualManufacturing is said to optimize the product development processeswithin a company, creating great strategic improvements.We have performed six interviews at the Volvo Group in order tounderstand the problem area and find a solution that can be applied withinthe product development domain. The result of this study is a model thathighlights the various aspects that should be discussed when investing inthis kind of technology successfully.
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