Towards evaluation of alternatives in information systems investments
Buianov, Aleksandr (2015)
Buianov, Aleksandr
2015
Master's Degree Programme in Business and Technology
Talouden ja rakentamisen tiedekunta - Faculty of Business and Built Environment
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Hyväksymispäivämäärä
2015-05-20
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tty-201505201382
https://urn.fi/URN:NBN:fi:tty-201505201382
Tiivistelmä
Modern highly competitive markets make companies to adapt to the ever-changing environment. Therefore, it is vital for the organizations to be flexible and provide maximum value to their customers. However, in modern firms almost every type of change touches the internal IS adjustment, as only utilizing them it is possible to achieve maximum efficiency, quality, and reliability of their services.
Nevertheless, every change requires an investment of time, money, or some other highly valuable resource, and in order to maintain healthy run in a long term, every single investment needs to be evaluated. However, evaluation process is highly demanding and time consuming as well, and it is not always easy to identify what exactly needs to be evaluated in regards to the investment decision. Current research tries to address the problem of evaluating the investment proposal or investment alternative on the very incipient stages, without gathering extensive information about the potential investment. The research methodology included literature research of other studies that were conducted on the topic. Found studies were analyzed in order to identify which problems modern companies face while evaluating their investment decisions.
After the analysis of the issues, it was found that most of the companies face the issues of skipping intangible benefits of an investment during the evaluation stage, which often represent the greater value than traditional qualitative tangible ones. In addition to that, companies need to establish a strong communication flow, as information gets scattered, leading to creation of a wring picture over the project. Thirdly, each investment proposal should be reviewed in regards to company's environment and assessed on its fit to it. On the basis of these researched, current study suggests a framework for addressing these issues and avoiding pitfalls of investment alternatives evaluations for companies.
Nevertheless, every change requires an investment of time, money, or some other highly valuable resource, and in order to maintain healthy run in a long term, every single investment needs to be evaluated. However, evaluation process is highly demanding and time consuming as well, and it is not always easy to identify what exactly needs to be evaluated in regards to the investment decision. Current research tries to address the problem of evaluating the investment proposal or investment alternative on the very incipient stages, without gathering extensive information about the potential investment. The research methodology included literature research of other studies that were conducted on the topic. Found studies were analyzed in order to identify which problems modern companies face while evaluating their investment decisions.
After the analysis of the issues, it was found that most of the companies face the issues of skipping intangible benefits of an investment during the evaluation stage, which often represent the greater value than traditional qualitative tangible ones. In addition to that, companies need to establish a strong communication flow, as information gets scattered, leading to creation of a wring picture over the project. Thirdly, each investment proposal should be reviewed in regards to company's environment and assessed on its fit to it. On the basis of these researched, current study suggests a framework for addressing these issues and avoiding pitfalls of investment alternatives evaluations for companies.