• Journal of Intelligence and Information Systems
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• v.14 no.1
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• pp.19-34
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• 2008

IT investment is usually very costly and takes a long time to get the results out of investment. However, most of currently available evaluation methods for IT investment are based upon short-term effects, hence their results are not fully trustworthy. In addition, those methods commonly consider only financial aspects such as ROI. For more reliable evaluation, it is necessary to consider non-financial factors such as system utilization, customer satisfaction, public relations, and so on, as well as financial factors. In this research, we propose an evaluation method that can evaluate both financial and non-financial aspects on a long-term base. For this purpose, we employed the research results developed in System dynamics and Balanced scorecard. System dynamics is useful in analyzing long term behavior of a given system, and Balanced scorecard is useful for evaluating both financial and non-financial aspects. We demonstrated the usefulness of our method by applying it to the evaluation of RFID (Radio Frequency Identification) investment in a distribution and retail industry. From this application, we found that RFID investment may not be rewarding in the short term, but is sure to be returning the income relative to its investment in the long run.

• Proceedings of the KIEE Conference
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• 2003.07a
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• pp.384-386
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• 2003

Striking in change that present our country is much by electricity industry reform and the Korea Electric Power Corporation is deciding power distribution system reliability indices every year but power distribution system for reliability evaluation and establishment of investment program are consisting punily. If consider efficient inflection of resources and hereafter power distribution division that is limited for target achievement of schedule level service evaluation and reliability side in operation of the power distribution system, can expect efficient practical use of the power distribution property if gains in electrical side about these change and most suitable investment way consist because there is necessity of electric power plan establishment of area electric power distribution place of business unit. This paper consider proper reliability level and maximum effect through quantitative analysis to gain electrical gains of the power distribution system in reliability side depending on trend DB(Data Base) of data of electric power system composition appliance in this treatise and apply data administration and reliability rate analysis that serve to decide most suitable investment precedence to supply of electric power property to power distribution system present investment algorithm.

• Journal of Korean Institute of Industrial Engineers
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• v.31 no.2
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• pp.143-151
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• 2005

Information technology(IT) investment evaluation requires measurements from many perspectives. Except for the case of financial performance, these measurements mostly belong to the qualitative or intangible domain. The problem with IT investment evaluation lies in the fact that it is very difficult to define the qualitative properties against which to measure the performances. This paper addresses the issue of developing the set of performance indices, and defining the structural relationships between them, such that the IT investment evaluation can be done in a systematic, objective and comprehensive manner. We introduce the balanced scorecard strategy map as the backbone reference frame for the generation of performance indices and for the description of the relationships between them. Sample indices for evaluating projects from strategic perspectives are provided with a case example. A step by step follow through of the index generation process has been presented along with the case.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.54 no.4
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• pp.177-184
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• 2005

This paper proposes a improved investment priority decision method of the facilities considering the reliability of distribution networks. The proposed method decides a investment order of the facilities combining, by fuzzy rules, the investment priority decision of KEPCO and the priority decision considering reliability evaluation indices. Where reliability evaluation indices are SAIFI(System Average Interruption Frequency Index) and SAIDI(System Average Interruption Duration Index), as referred to evaluation index for sustained interruption. The reliability analysis method of distribution networks applied in this paper utilizes analytic method, where the used reliability data is historical data of KEPCO. Particularly, we assumed that the failure rate increased as the equipment ages. To verify the performance of the proposed method, we applied it with the planned projects to reinforce the weak facility electrical facilities in KEPCO in 2004. The evaluation result showed that, under a limited budget, the reliability of the KEPCO in the Busan region using the proposed method can be enhanced than using the conventional KEPCO's method. Therefore, the results verify the proposed method can be efficiently used in the actual priorities method for investing the electrical facilities.

• Journal of Agricultural Extension & Community Development
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• v.25 no.3
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• pp.149-160
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• 2018

This study aimed to analyze the replacement investment of the diesel fuel system with the pallet fuel system in the Korean farming sector. Equivalent annual annuity approach was used to resolve a discrepancy of useful life in capital goods and to facilitate investment analyses in an independent perspective. Data was obtained from previous studies on economic analysis of greenhouse tomato, paprika and cucumber. Results showed that the replacement with the pallet fuel system was acceptable irrespective of the remaining period of useful life for the diesel fuel system. In addition, sensitivity analysis with government support level, repair cost, and light and heat energy cost show ed robustness in the possibility of replacement with the pallet fuel system while the speed of replacement was accelerated with an increase in the amount of diesel fuel used and price of diesel fuel, and a decrease in price of the pallet fuel. The result implied that the replacement investment rather than a new investment was appropriate for existing greenhouse farmers and the pallet fuel system was acceptable to replace existing diesel fuel system in producing greenhouse tomato, paprika and cucumber.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.525-528
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• 2003

In recent, Information Technology(IT) is the biggest issue on the world at large including construction industry as core strategic means for reinforcing competitive power of company and nation and raising its effectiveness. However, CEO of each finn is deferring IT investment decision because there's no case to measure real value of IT and confidence to economic effect of information system. IT Evaluation will be so helpful that most construction finns make a plan of IT investment. and it is necessary to achieve their management goal and have the maximum of firm's value with the usage of IT system. Therefore, The purpose of this research is to promote the increase of IT investment and the improvement of the standard in IT with the development of IT evaluation system to be monitoring IT level continually.

• Journal of Information Technology Services
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• v.12 no.3
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• pp.165-178
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• 2013

The interest in economics and efficiency of IT investment is growing as the amount of overall governmental IT investment steadily increase. Accordingly, there is a strong need to determine whether the expenditure incurs effectively for IT investment and to accurately analyze the economics of IT investment, In this perspective, this study discusses the prior researches on concepts regarding the analysis of IT investment management framework as proposed from academic and professional perspectives in advanced countries' government sectors. Thereafter, an adoption of IT investment management (ITIM) framework has been considered so as to enhance the performance of ICT initiative projects in the public sector. In the suggested IT investment management framework, we suggest economics and efficiency of public IT investment should be improved by integrating ICT project selection and control as well as evaluation stage into single governance framework.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.18 no.36
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• pp.159-166
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• 1995

In order to get equipments or facilities the company evaluates the alternatives on the investment and makes a decision in terms of investment economy. Quite often, however, companies face difficulties in generating investment alternatives and evaluating the alternatives generated. This paper discusses the methods of investment evaluation and shows a case study in which a specific method is applied to a firm.

• Korean Journal of Construction Engineering and Management
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• v.5 no.1 s.17
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• pp.88-98
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• 2004

In recent, Information Technology(IT) is the biggest issue on the social whole including the construction industry. IT is recognized as a key strategic means to reinforce competitive power and raise the effectiveness. However, CEOs of each firm have trouble with IT investment decision-making. Because there is neither any case to measure real value of IT nor any confidence to economic effect of information system. IT evaluation is so helpful for most construction firms to make a plan of IT investment. In addition, which will eventually facilitate to achieve their management goal and have the maximum of the firms' value. Therefore, the purpose of this research is to develop IT evaluation system for monitoring IT level continually. And this will be enable a construction company to increase IT investment and improve the level of IT in the construction industry.

• Journal of the Korean Operations Research and Management Science Society
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• v.27 no.2
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• pp.63-79
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• 2002

During the last decade many enterprises spent a huge amount of money for investment on Information Technology (IT) & Information System (IS) to attain competitive advantage and to maximize their business performance by satisfying the various requirements of customers. Under such circumstances, methodologies for evaluating IT impact on business performance are very important issues for strategic decision making on investment. In this study, we propose a performance evaluation model that adopts the concept of the Balanced Scorecard (BSC) and the Value Chain to analyze the financial impact and non-financial impact of IT & IS at each critical work area. This model combines the 4 evaluation areas from BSC and 6 critical work areas from Value Chain and measures the Key Performance Indicator (HPI) and the effect of KPI. Also, we present a case study of which the evaluation model has been conducted on a major manufacturing company. finally. we address some important notes to improve the IT & IS performances in the real-world.