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http://dx.doi.org/10.3745/KIPSTD.2007.14-D.1.107

Building IT ROI Assessment System for Estimating the Monetary Value of Non-financial Benefits  

Kim, Young-Woon (숭실대학교 컴퓨터학과)
Chong, Ki-Won (숭실대학교 컴퓨터학과)
Publication Information
The KIPS Transactions:PartD / v.14D, no.1, 2007 , pp. 107-120 More about this Journal
Abstract
When it tomes to IT investment, it's a challenge for the management to make the right decision. Unlike investment in other business area, it's hard to measure direct cost vs. effect in IT business. To validate the investment in IT, it is required to establish objective assessment system that both provider and beneficiary of information can accept, and it is also required to suggest an assessment tool of fixed quantity that includes measuring standards and method for the economic effect of new investment. This study, therefore, has developed IT ROI Methodology that can prove investment validity by accepting the strong points of the existing models while complementing their weak points and by analyzing IT Investment and IT Efforts. It also has built an IT ROI System that reflects the methodology which is applied to 21 companies of 5 business categories. This system is designed to provide effective and objective decision-making tool for IT investment by proving what positive impacts IT could have on business activities.
Keywords
IT ROI; IT investment; IT benefit;
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