The Electronic Journal of Information Systems Evaluation provides critical perspectives on topics relevant to Information Systems Evaluation, with an emphasis on the organisational and management implications
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Journal Article

Using Regression Analysis to Address Methodological and Theoretical Issues in IT Cost Benchmarking  pp22-35

Vlad Krotov

© Mar 2016 Volume 19 Issue 1, Editor: Shaun Pather, pp1 - 82

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Abstract

Abstract: The practice of IT cost benchmarking using IT managerial control ratios suffers from a number of methodological and theoretical issues. These issues arise from the following three assumptions: (1) the functional form of the relationship between a numerator and denominator used in an IT managerial control ratio is strictly proportional; (2) the nature of the underlying probability distribution of industry samples of IT managerial control ratios is normal and (3) position of an organization in relation to an industry norm can be unambiguously interpreted. If these assumptions are not met, then determining and interpreting a company’s position with respect to IT costs in relation to industry averages and other companies within the industry is subject to some ambiguity. This paper uses empirical tests and theoretical arguments to show that these three assumptions may not hold true in practice. It is then argued that regression‑based analysis of IT costs can be used to address these issues. Further theoretical and empirical work is needed to develop these regression models so that practitioners can have a reliable and valid method for estimating and interpreting their company’s position with respect to IT costs in relation to an industry norm. At the minimum, practitioners should not rely on IT cost benchmarking for setting their IT budgets without taking into account the methodological and theoretical issues.

 

Keywords: Keywords: IT costs, IT spending, IT budget, justification, benchmarking, methodology, theory

 

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Journal Article

IT Project Selection: Politics, Experience and good Friends  pp55-70

Keld Pedersen

© Mar 2016 Volume 19 Issue 1, Editor: Shaun Pather, pp1 - 82

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Abstract

Abstract: Selecting the right IT projects is increasingly important for many organizations. Project portfolio managers play a key role during project selection, but even though they have a great impact on the selection process, we have little knowledge ab out how they decide which projects to recommend for initiation. Most of the research on project selection is normative, suggesting new methods, but available empirical studies indicate that many methods are seldom used in practice. This paper addresses th e issue by providing increased understanding of IT project selection practice, thereby facilitating the development of methods that better fit current practice. The study is based on naturalistic decision‑making theory and interviews with experienced proj ect portfolio managers who, when selecting projects, primarily rely on political skills, experience and personal networks rather than on formal IT project‑selection methods, and these findings point to new areas for developing new methodological support f or IT project selection.

 

Keywords: Keywords: IT project selection, IT project justification, IT project portfolio management

 

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Journal Article

Benefits, Justification and Implementation Planning of Real‑Time Business Intelligence Systems  pp105-119

Kiril Dobrev, Mike Hart

© Sep 2015 Volume 18 Issue 2, The special issue from ECIME 2014, Editor: Jan Devos, pp93 - 210

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Abstract

Abstract: While traditional Business Intelligence (BI) environments have for some time assisted organizations with their information requirements, they have become increasingly incompatible with the pressures of current business environments. They are g eared towards analysis of historical information, and limited in their ability to close the latency gap between information and action. This has encouraged a movement towards real‑time BI (RTBI) systems. Although these overcome latency aspects of tradit ional BI, and offer many value‑adding benefits to organizations, their implementation has been hampered by technological complexities, and has required changes to the business environment, and high costs to put them in place. Justification of such IT inve stments remains a problem as they provide many intangible benefits incompatible with traditional (financial) IT benefits measurement models. For these reasons, the research set out to investigate and understand the technological components and organizat ional changes surrounding RTBI implementation. To further facilitate justification, application areas and benefits of RTBI were also explored. Data was collected through semi‑structured in‑depth interviews in organizations across several industries that h ad implemented or were implementing RTBI systems. A qualitative thematic analysis was then used to investigate the issues further. The study confirmed that RTBI is likely to require major changes to technical architecture, which may involve acquisition of new tools and technologies. Several issues at the organisational level also need to be addressed, and the research uncovered a wide range of practical RTBI applications and analytics applied across industries; process intelligence was found to play a fun damental role in many of these. The study reveals that RTBI can offer significant and measurable improvements, help organizations remain competitive, and in the long run, drive strategic business objectives from a grass roots level. To assist organisation s to take advantage of this, a roadmap for RTBI justification and implementation planning is suggested.

 

Keywords: Keywords: business intelligence, real-time BI, BI maturity, analytics, process intelligence, operational BI, justification

 

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