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IS Value and Inviestment Appraisal: A case study
of a local authority
Steve Jones, Chief Information Systems Officer ,
Conwy County Borough Council
Bodlondeb,
Conwy, Email:
joness@conwy.gov.uk, and
Jim Hughes, Information Systems Research Centre,
University of Salford, UK, Email:
j.hughes@cms.salford.ac.uk
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ABSTRACT |
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There is a widespread
concern in organisations that investment in IS does not deliver value and
that many IS projects do not meet business objectives. IS expenditure is
regarded by senior managers to be both costly and risky and yet there are
few formalised ways that managers use to substantiate this feeling. Many
IS investments appear to go ahead without the use of formal investment
appraisal and risk management techniques. Often the specification and
implementation is left to the IS professionals which case history shows
can lead to disaster. This paper uses a case study based in a local
authority who were seeking to implement an Office Automation (OA) system
to consolidate and integrate the many, often disparate, departmental
systems that had evolved over the recent years. The senior staff perceived
that the introduction of OA would improve both the efficiency and the
effectiveness of the organisation since it would impact favourably not
only on the standard use of technology but also on the standardisation of
the working environment and the business culture. The case study examines
how the IS investment was undertaken and focuses on the basis for
management’s ‘perception’ that the OA system would achieve the managers’
objectives. The findings and the resulting learning from the case study
are used together with appropriate sources from the literature to consider
the value and benefits of IS to address a number of key strategic issues.
The paper concludes with a tentative framework which although based on a
local authority case may be generally useful to IS professionals, IS
researchers/academics and importantly to those senior managers not in IS
whose decisions currently lack formality on this issue. |
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