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Write a 9 page essay on Evaluation Process: Investment Appraisal Process.Since, advancements in technology provide and furnish industries with vital information, communications, and processes that ens
Write a 9 page essay on Evaluation Process: Investment Appraisal Process.
Since, advancements in technology provide and furnish industries with vital information, communications, and processes that ensure not only an even and efficient workflow in the internal organisation of the company, but it also guarantees and secures the position of the corporation in the business world.
Being such, it is not surprising that an influx of investments in this area of the organization is being undertaken. In fact, ”The World Information Technology Service Alliance (WITSA) reported that the global information and communications industry surpassed the US $ 2trillion mark in 2000, and predicts it reaching the US $3 trillion on 2004” (Irani & Love, 2002, p 74). With such an aggressive climate in the information and communications industry, plus the truism that most organisations have increasingly IT/IS investments as an “important category of total organizational expenditure” (Fitzgerald, 1998, p 15), surely IT/IS investment requires focus and attention.
In lieu with this, the paper intends to take a critical look at some of the theories employed in the appraisal of IT/IS investments with the hope that in the end new insights and even theories may be arrived at.
Being an essential and integrated part of the organizational expenditures, IT/IS investments should be undertaken with due care. But over and above that assertion is the belief that only a proper evaluation of IT/IS investments will allow the “organization to benchmark and define costs, benefits, risks, and implications of investing in IT investments and infrastructure (Farbey et al, 1993. Remenyi et al, 2000 cited in Irani et al, 2005). Moreover, an appropriate and suitable investment appraisal in IT investment affords a “justification for investment, enables companies to make a decision [in the midst] of competing projects especially when capital rationing is an issue, it acts as a control mechanisms over expenditure, and the development and implementation of the project [and
