The Value And Impact Of Information Technology Investments And The Implications Of Those Investments For Effective Management Of The Information Systems Organization

Running Head : friendship applied knowledge Investments culture engine room InvestmentsIntroductionOrganizations score extended enthronisations in implementing IT systems . IT installations has become necessary to subtile and big compositions , now than the in the last decade . as yet grammatical case and take of IT enthronisation depends on the casing of validational operations . The queen-size organizations ar much apply the study engineering science and also they are put much on rearing engine room as a percentage of their revenues than smaller companies (Mitra , Sabyasachi and Chaya , Antoine Karim . Although the mysterious IT enthronisations depend on organizational strategic and economic execute , they are also signifi allow for the gatetly related to group numeral process of the organization . in time , though there are more signifi tail endt benefits of IT investments in an organization , deciding on the chastise size of work out and ROI is not that much easyInformation Technology projects are organizational investments that harbinger positive fleets (Applegate et al ,1996 . Hu and sow (2001 ) cited in Sam Lubbe , argue that the promise of increased prefer was the impetuous force idler large-scale investment in IT since the 1970 sSo info technology investment is just like every another(prenominal)(a)(a) capital pulmonary tuberculosis , and fills to concentrate on refractory , variable cost and expected judge of return . They advert that an organization s IT projects should be considered as an investment portfolio that balances gamble and rates of return . Managers need to understand and analyze the last of investment on tuition technology like some(prenominal) other major investment . The investments in knowledge technology (IT can im screen the surgery the organization if managed wisely (U .S be and Information Management disagreement , 2000 . This statement notifies that IT investment take searing skills or intelligence to pull in it effective .

Following can be some of the risks in IT investments :The Changing demands of the organization may not be comfortable by the older IT systems , so needs constant up gradation and recurring investmentsAll the ledge products may not be suitable to the organizational certain needs , and requires customized trailments or patches , which may result risky and costlyFrequently IT projects set up the problem of cost overruns and docket slippages which may result compendious to cope with existing operationsThe other concerns for the managers while making a decision on IT investment areto demonstrate the value of IT deliverables to the organization and how they promote the business strategyto prove the IT effectiveness by provoke sourcing and managing of IT servicesto make the practices always pay back for the regulatory requirementsto prove the provide and controlsto reduce unnecessary spendGreen and Jenkins (1998 ) assimilate identified four factors that clitoris up the infractmentof successful discipline technology plans the disaster to develop asset management plans for information technology , the calamity to develop a life-cycle approach to bud reaching , the failure to match information technology expenditure with major income sources and the failure to develop benchmarks for return on investment in information technologyThe decision of investment in Information technology (IT ) includes both financial and technological issues . in any case reckon the Return on Investment (ROI ) of...If you want to get a full essay, beau monde it on our website: Ordercustompaper.com

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