scholarly journals An investigation into the principles for creating and evaluating effective business cases for complex IT investments

2021 ◽  
Author(s):  
Yao Zhou

This study combines interviews and online Q-­‐sorting to investigate the principles for effectively creating and evaluating business cases for complex IT investments, such as enterprise information systems. Interviews with nine expert practitioners are analyzed to examine current practices and challenges with the process of creating and evaluating business cases for complex IT investments. An online Q-­‐sorting study using 19 expert practitioners is also analyzed to examine the relative importance of 32 principles for the effective creation and evaluation of business cases for complex IT investments. The findings indicate there are at least two different types of opinions on the most important principles for creating and evaluating the business cases. Furthermore, several principles that have not received much prior study were judged to be highly important such as the need to consider change management, strategic alignment, and the process of “socialization” of a business case for complex IT investments.

2021 ◽  
Author(s):  
Yao Zhou

This study combines interviews and online Q-­‐sorting to investigate the principles for effectively creating and evaluating business cases for complex IT investments, such as enterprise information systems. Interviews with nine expert practitioners are analyzed to examine current practices and challenges with the process of creating and evaluating business cases for complex IT investments. An online Q-­‐sorting study using 19 expert practitioners is also analyzed to examine the relative importance of 32 principles for the effective creation and evaluation of business cases for complex IT investments. The findings indicate there are at least two different types of opinions on the most important principles for creating and evaluating the business cases. Furthermore, several principles that have not received much prior study were judged to be highly important such as the need to consider change management, strategic alignment, and the process of “socialization” of a business case for complex IT investments.


Author(s):  
Francisco Chia Cua ◽  
Tony C. Garrett

A successful organisation continually initiates and implements radical innovations. The innovation must not only be new. A radical innovation has a significant impact on how the organisation undertakes its business process. Impacting is different from affecting. The former has a more substantial effect on the organisation. This is precisely why new enterprise information systems represent a radical innovation. To be successful, the organisation undertakes an innovation-decision process to align itself, as much as possible, with the ever-changing external realities. The innovation-decision process dictates selling an idea (the business case) that the new enterprise information systems possess economic value to upper management. This paper depicts a bird’s-eye view of how innovation, in this case, the new enterprise information systems, diffuses (episteme) via business case development (techne) in the innovation-decision process. As shown in Figure 1, the adoption and implementation of new enterprise information systems constitute a radical change (prerequisite F). New enterprise information systems represent radical innovation. An innovation-decision process starts with an initiation phase through which the individuals or decision-making units move from identifying and knowing the new enterprise information systems, to the forming of an attitude toward the different competing software packages, and subsequently to deciding whether to adopt or reject the implementation and use of the new idea. A business case is a formally written document that argues about the adoption to a certain course of action. It contains a point-by-point analysis to making a decision for a set of alternative courses of action to accomplish a specific goal. A business case process walks through the initiation phase of the innovation-decision process and talks about the project plans that concern the implementation phase, which follows the initiation phase. The business case document justifies, in detail, the innovation-decision process: what has transpired in the initiation phase and what will transpire in the implementation phase. It takes into account the innovation-decision process. In short, a business case process develops a detailed business case document of the innovation-decision process. Thus, a business case is both a means and an end.


Author(s):  
Francisco Chia Cua ◽  
Tony C. Garrett

The term business case is used to describe both a process and a document. A business case exploits an initiative. Exploiting the initiative from awareness to implementation encompasses a process, referred to in the diffusion of innovation parlance, as the innovation-decision process. The development of a business case concerns this innovation-decision process. The individuals or the decision-making units pass through the innovation-decision process, gaining knowledge of a new idea, forming an attitude toward it, and deciding whether to adopt or reject it (Rogers, 2003, p 20). Gaining the knowledge triggers the awareness or enforces it. Then, it leads to setting the agenda. After the agenda-setting stage is the examination of the available options. Attributes of competing options are matched together, enabling attitude formation in favour or against a particular option. This results in the creation of a shortlist of two or three options. A decision is generally reached at this point. The decision is, therefore, part of the matching stage. However, this is not always true in an organisational setting. There is a third stage after the matching stage. It is the decision (aka, business case) stage. Organisations generally demand rigour in making the decision. A business case document embodies the rigour in the business case development. Consequently, the decision stage culminates with a completed business case document and the decision that results from it: to adopt or reject the innovation. The three stages, agenda setting, matching, and decision stages, compose the initiation phase. If the decision favours adoption, then the implementation phase proceeds. In the context of implementing the new enterprise information systems, the stages in the implementation phase consists of pre-production, production, post-production (that is, maintenance), and confirmation stages. In summary, the business case development is a means, and its end is a business case document.


2011 ◽  
pp. 346-355
Author(s):  
Francisco Chia Cua ◽  
Tony C. Garrett

The term business case is used to describe both a process and a document. A business case exploits an initiative. Exploiting the initiative from awareness to implementation encompasses a process, referred to in the diffusion of innovation parlance, as the innovation-decision process. The development of a business case concerns this innovation-decision process. The individuals or the decision-making units pass through the innovation-decision process, gaining knowledge of a new idea, forming an attitude toward it, and deciding whether to adopt or reject it (Rogers, 2003, p 20). Gaining the knowledge triggers the awareness or enforces it. Then, it leads to setting the agenda. After the agenda-setting stage is the examination of the available options. Attributes of competing options are matched together, enabling attitude formation in favour or against a particular option. This results in the creation of a shortlist of two or three options. A decision is generally reached at this point. The decision is, therefore, part of the matching stage. However, this is not always true in an organisational setting. There is a third stage after the matching stage. It is the decision (aka, business case) stage. Organisations generally demand rigour in making the decision. A business case document embodies the rigour in the business case development. Consequently, the decision stage culminates with a completed business case document and the decision that results from it: to adopt or reject the innovation. The three stages, agenda setting, matching, and decision stages, compose the initiation phase. If the decision favours adoption, then the implementation phase proceeds. In the context of implementing the new enterprise information systems, the stages in the implementation phase consists of pre-production, production, post-production (that is, maintenance), and confirmation stages. In summary, the business case development is a means, and its end is a business case document.


2011 ◽  
pp. 1196-1208
Author(s):  
Alexei Sharpanskykh

The concept of power is inherent in human organizations of any type. As power relations have important consequences for organizational viability and productivity, they should be explicitly represented in enterprise information systems (EISs). Although organization theory provides a rich and very diverse theoretical basis on organizational power, still most of the definitions for power-related concepts are too abstract, often vague and ambiguous to be directly implemented in EISs. To create a bridge between informal organization theories and automated EISs, this article proposes a formal logic-based specification language for representing power (in particular authority) relations. The use of the language is illustrated by considering authority structures of organizations of different types. Moreover, the article demonstrates how the formalized authority relations can be integrated into an EIS.


Author(s):  
Alexei Sharpanskykh

The concept of power is inherent in human organizations of any type. As power relations have important consequences for organizational viability and productivity, they should be explicitly represented in enterprise information systems (EISs). Although organization theory provides a rich and very diverse theoretical basis on organizational power, still most of the definitions for power-related concepts are too abstract, often vague and ambiguous to be directly implemented in EISs. To create a bridge between informal organization theories and automated EISs, this article proposes a formal logic-based specification language for representing power (in particular authority) relations. The use of the language is illustrated by considering authority structures of organizations of different types. Moreover, the article demonstrates how the formalized authority relations can be integrated into an EIS.


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