Management of Information Technology Spending - Best practice in Korean firms -

기업 정보화 지출 관리에 관한 연구 - 대기업 정보화 지출 관리 사례를 중심으로 한 실증적 연구 -

Identifying benefit from IT spending is of great concern to most firms in today's competing world. Cost-benefit analysis of IT spending can be conducted when firms have systematic management process of IT spending and the supporting data. This paper examined Korean firm's management process of IT spending, and proposes the best practice. Management process of IT spending and the definition of IT expense and investment were proposed based on the best practice. A proposition that "IT expenses and investments need to be distinguished to manage IT spending effectively' was proposed. Hypotheses were generated and tested with empirical data. Statistical analyses show that ratios of IT investment to IT expense were significantly different during the study period. The results of the study imply that firms can acquire useful information by distinguishing IT expense and investment in the management process of IT spending.