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An Empirical Study of Factors Affecting the Value Gap in IS Investment  

Park Kiho (한양대학교 디지털경영센터)
Cho Namjae (한양대학교 경영학부)
Publication Information
Korean Management Science Review / v.21, no.2, 2004 , pp. 145-165 More about this Journal
Abstract
Frequently. lots of organizations have experienced the value discrepancy between the expected value and the realized value from IS (information systems) investments. Being positive or negative the difference is. however, the existence of discrepancy itself is an evidence of less-than-sound management and measurement of IS projects. Analyzing the factors that cause such discrepancy has become an issue of scrutiny both in academia and in practice. We model which factors. as predictors, will affect the value discrepancy, as dependent variables. in IS investment. This research will establish and examine the research model. the validity of category classification of value discrepancy factors and the perceptual level of IS value discrepancy by survey research. As a result of the survey research. the strategic alignment. the proper system design for staffs. the project planning capability. and interdepartmental task cooperation are perceived as the factors that significantly affect the value discrepancy. And known as IS success factors such as the managerial support, the change management, the standardized process. and the competitive investment are not significant factors. The research findings will provide and emphasize useful implications which factors should be deliberately investigated in IS investment both for practices considering IS deployment and for academia.
Keywords
Information System; Value discrepancy; Expected value; Potential value; Realized value; Balanced scorecard; IS payoff; Barriers;
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