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
For general enquiries email administrator@ejise.com
Click here to see other Scholarly Electronic Journals published by API
For a range of research text books on this and complimentary topics visit the Academic Bookshop

Information about the European Conference on Information Management and Evaluation is available here

linkedin-120 

twitter2-125 

fb_logo-125 

 
Journal Issue
Volume 19 Issue 1 / Mar 2016  pp1‑82

Editor: Shaun Pather

Download PDF (free)

Editorial  pp1‑2

Shaun Pather Editorial

Look inside Download PDF (free)

Cloud Adoption Decisions: Benefitting from an Integrated Perspective  pp3‑21

Deepa Ray

Look inside Download PDF (free)

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

Vlad Krotov

Look inside Download PDF (free)

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

 

Share |
Investigating the Characteristics Needed by Scrum Team Members to Successfully Transfer Tacit Knowledge During Agile Software Projects  pp36‑54

Deon Takpuie, Maureen Tanner

Look inside Download PDF (free)

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

Keld Pedersen

Look inside Download PDF (free)

Survey on Available Methods to Evaluate IT Investment  pp71‑82

Pornthep Chaysin, Jirapun Daengdej, Nopphon Tangjitprom

Look inside Download PDF (free)