Title: Assessing the Payoff from an Information Technology Infrastructure: A Multi-Phased Approach
Authors: Lara Preiser-Houy
Addresses: Author address listing can be found in the "About the Authors" section at the end of the article.
Abstract: The key managerial challenge associated with providing an information technology (IT) infrastructure is to be able to ascertain the economic viability of infrastructure investments. Such investments appear to be on the increase as we move into the latter half of this decade. Yet to date, very little is known about the impacts infrastructure resources have on organizational performance and the ways in which these impacts could be measured. The lack of guidelines on how to assess the infrastructure payoff presents a problem for the Information Systems (IS) managers charged with the task of providing an effective foundation for the organizational business processes. An approach to assess the economic viability of infrastructure resources presented in this paper is aimed at helping IS and general managers make more informed decisions as to their infrastructure investments. The proposed approach consists of three phases -- identifying infrastructure value sources, assessing the cost and value of the firm's installed infrastructure resources, and justifying additional infrastructure investments. The application of the proposed approach to the infrastructure investment decisions is one of the first steps towards addressing the managerial challenge of providing a robust foundation for the firm's business activities.
Keywords: Information technology infrastructure; infrastructure investments; infrastructure payoff; economic viability; infrastructure resources; infrastructure value.
Journal of Business and Management, 1996 Vol.3 No.3, pp.53 - 79
Published online: 05 Sep 2024 *