The enigma of evaluation: Benefits, costs and risks of IT in Australian small-medium-sized enterprises

The evaluation of information technology (IT) is fraught with misconception and there is a lack of understanding of appropriate IT evaluation methods and techniques. The benefits, costs and risks of IT need to be identified, managed, and controlled if businesses are to derive value from their invest...

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Main Authors: Love, Peter, Irani, Z., Standing, C., Lin, Chad, Burn, J.
Format: Journal Article
Published: Elsevier BV 2005
Online Access:http://hdl.handle.net/20.500.11937/37847
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author Love, Peter
Irani, Z.
Standing, C.
Lin, Chad
Burn, J.
author_facet Love, Peter
Irani, Z.
Standing, C.
Lin, Chad
Burn, J.
author_sort Love, Peter
building Curtin Institutional Repository
collection Online Access
description The evaluation of information technology (IT) is fraught with misconception and there is a lack of understanding of appropriate IT evaluation methods and techniques. The benefits, costs and risks of IT need to be identified, managed, and controlled if businesses are to derive value from their investments. This paper presents findings from an exploratory study that used a questionnaire survey to determine the benefits, costs and risks of IT investments from 130 small-to-medium-sized enterprises (SMEs) in Australia. The analysis revealed that organizations from different industry sectors significantly differ in the amount they invest in IT but that firm size (in terms of turnover and number of employees) does not influence IT investment levels. Second, strategic benefits vary across different industry sectors. Third, the way employees adapt to change as a result of IT implementation depends on the size of the organization. Based upon the findings, a series of benchmark metrics for benefits, costs, and risks of IT are presented. It is posited that these can serve as a reference point for initiating a quality evaluation cycle in which benchmarking forms an integral component of the strategic process.
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spelling curtin-20.500.11937-378472018-03-29T09:06:49Z The enigma of evaluation: Benefits, costs and risks of IT in Australian small-medium-sized enterprises Love, Peter Irani, Z. Standing, C. Lin, Chad Burn, J. The evaluation of information technology (IT) is fraught with misconception and there is a lack of understanding of appropriate IT evaluation methods and techniques. The benefits, costs and risks of IT need to be identified, managed, and controlled if businesses are to derive value from their investments. This paper presents findings from an exploratory study that used a questionnaire survey to determine the benefits, costs and risks of IT investments from 130 small-to-medium-sized enterprises (SMEs) in Australia. The analysis revealed that organizations from different industry sectors significantly differ in the amount they invest in IT but that firm size (in terms of turnover and number of employees) does not influence IT investment levels. Second, strategic benefits vary across different industry sectors. Third, the way employees adapt to change as a result of IT implementation depends on the size of the organization. Based upon the findings, a series of benchmark metrics for benefits, costs, and risks of IT are presented. It is posited that these can serve as a reference point for initiating a quality evaluation cycle in which benchmarking forms an integral component of the strategic process. 2005 Journal Article http://hdl.handle.net/20.500.11937/37847 10.1016/j.im.2004.10.004 Elsevier BV restricted
spellingShingle Love, Peter
Irani, Z.
Standing, C.
Lin, Chad
Burn, J.
The enigma of evaluation: Benefits, costs and risks of IT in Australian small-medium-sized enterprises
title The enigma of evaluation: Benefits, costs and risks of IT in Australian small-medium-sized enterprises
title_full The enigma of evaluation: Benefits, costs and risks of IT in Australian small-medium-sized enterprises
title_fullStr The enigma of evaluation: Benefits, costs and risks of IT in Australian small-medium-sized enterprises
title_full_unstemmed The enigma of evaluation: Benefits, costs and risks of IT in Australian small-medium-sized enterprises
title_short The enigma of evaluation: Benefits, costs and risks of IT in Australian small-medium-sized enterprises
title_sort enigma of evaluation: benefits, costs and risks of it in australian small-medium-sized enterprises
url http://hdl.handle.net/20.500.11937/37847