• Title/Summary/Keyword: investment decision criteria

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The Impact of IT Project Size and Types on IT Investment Decision Criteria (IT프로젝트 규모와 유형에 따른 IT투자 의사결정기준의 차이)

  • Lee Kukhie
    • Journal of Information Technology Applications and Management
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    • v.12 no.1
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    • pp.191-211
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    • 2005
  • This study investigates the decision criteria used in the context of IT investment decision making and empirically analyzes the impact of IT project size and types on the importance of decision criteria. 5 criteria which have been extracted from the previous studies and industry practices are budget, financial benefits. strategic value. risk, and the degree of proposer's eagerness. Data of 120 IT project proposals have been collected from 5 companies including bank, insurance. and stock trading company. As results of ANOVA test. 7 out of 10 hypothesis have been accepted statistically. That is. the bigger the project size. the higher the evaluation weight of project budget and risk criteria and the lower the weight of proposer's eagerness. And in case of the infrastructure investment type. the emphasis is placed more on strategic value and risk criteria and less on financial benefit and proposer's eagerness. These findings provide insights for both IT practitioners and researchers.

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The design of Decision Support System for mid-and long-range investment planning (중장기 투자계획을 위한 의사결정지원 시스템의 설계)

  • 서의호;김원태;서창교;이석우
    • Korean Management Science Review
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    • v.9 no.1
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    • pp.53-65
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    • 1992
  • Decision Support System(DSS) is an advanced information system concept prevailing since 1980s. It supports managers' decision making activities by providing not only information but decision alternatives. It essentially consists of the components of database, modelbase and dialogue systems. With the development of its databases, POSCO needs a number of modelbases in establishing DSSs in various areas such as production planning and investment. This research particularly focuses on establishment of a mid-and long-range investment DSS and investigates the necessity and the problems of an investment DSS and the decision criteria for investment priority. We (1) propose a modelbase which uses the concepts of Analytic Hierarchy Process(AHP) and Zero-Base Budgeting(ZBB), along with an appropriate scoring method, database and dialogue system to support the investment manager in evaluating investment proposals ; (2) implement the system using relational database management system ; and (3) discuss the results of implementing the investment DSS.

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A Study on Information Security Investment by the Analytic Hierarchy Process (AHP를 이용한 정보보호투자 의사결정에 대한 연구)

  • Kong, Hee-Kyung;Jun, Hyo-Jung;Kim, Tae-Sung
    • Journal of Information Technology Applications and Management
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    • v.15 no.1
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    • pp.139-152
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    • 2008
  • Recently organizations identify information security as one of essential means for gaining competitive advantage. However, they do not actively increase investment in this area because they consider spending for information security as a cost rather than an investment. This is because organizations don't have a clear understanding of information security objectives which can be achieved through investment, and they don't have criteria for alternatives which can be considered in information security investment decision-making. In this paper we propose to model the decision-making process of information security investment by the AHP (Analytic Hierarchy Process). The results will show that availability is the most important criterion for the decision of information security alternatives, and intrusion detection is the most important information security alternative. We hope that the results of this paper provide a guideline for clear decision-making in information security investment.

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Decision Criteria and Affecting Factors in Information Technology Adoption - Innovation Characteristics and Critical Mass Perspective - (정보기술 도입 결정기준 및 영향 요인 - 혁신특성과 핵심집단 관점 -)

  • Park, J.-Hun
    • Asia pacific journal of information systems
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    • v.9 no.4
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    • pp.125-142
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    • 1999
  • The increased investment in technological innovations makes the investigation of factors affecting technology adoption more interesting. Several perspectives have been proposed to explain the determinants of information technology adoption. While the traditional innovation diffusion research streams try to explain and predict adoption behavior with the adopter's perceptions about the characteristics of the innovation itself, critical mass theorists argue that adoption behavior as a collective action is based on what their business partners are doing and whether there exists enough critical mass to justify the investment. Drawing on theses two perspectives, this study investigates the decision criteria in the adoption of information technology as innovation and factors affecting the decision criteria. The survey results reveal that the adoption behavior is affected both by innovation characteristics and by critical mass's activity. Correlation analysis, t-test, and stepwise regression models also show that as the environmental uncertainty is getting higher, adoption decision is affected more by what others are doing, and that highly competitive organizations seem to play the role of critical mass.

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Multiobjective Decision Model with Consideration of Flexibility in Sequential Capital Budgeting

  • Min, Kye-Ryo;Park, Kyung-Soo
    • Journal of the military operations research society of Korea
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    • v.7 no.1
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    • pp.53-80
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    • 1981
  • This paper explores a rational investment decision model in sequential capital allocation process under capital rationing. A method is proposed for measuring the new investment decision factor which is the flexibility that describes the future availability of invested funds. This flexibility is important in sequential decision process. Also presented is a multiobjective (MO) decision model into which flexibility is incorporated with the profit and risk factors. The effectiveness of this criterion is compared with the expected present value and the mean-semivariance criteria through a simulation model.

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An Empirical Study on Decision Criteria of Core Banking System Redevelopment Project (은행 기간시스템 전면 재개발 의사결정 기준에 대한 실증적 연구)

  • Lee, Kyung-Jo;Rhew, Sung-Yul;Kim, Sung Kun
    • Journal of Information Technology Applications and Management
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    • v.19 no.4
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    • pp.19-39
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    • 2012
  • Korean core banking system has been redeveloped twice in the last 30 years with big-bang method, but still needs innovation to meet everlasting business changes. The objective of this study is to identify which decision criteria lead to replacement decision of core baning system in spite of its huge investment and accompanying business risk. For the study, we conducted a survey to 64 decision makers working in banks and IT service companies, and analysed the data using factor analysis and multi-regression analysis method of SPSS. As a result, we extracted statistically valid decision model with 4 major decision criteria, which are IT external, IT internal, IT ecology and Executive's will factor. Among them, we concluded only IT internal and IT ecology criteria give significant influence over the replacement decision of existing core banking system.

A Study on the Factors Affecting Investment Decision of Korean Venture Capitalist (한국 벤처캐피탈리스트의 투자결정에 미치는 요인 연구)

  • Koo, JungHwe;Kim, YoungJun;Lee, SuYong;Kim, Dohyeon;Baek, Jiyeon
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.14 no.4
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    • pp.1-18
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    • 2019
  • Venture capitalists (VCs) play an important role in finding and growing innovative venture companies with high growth potential but high risk. Venture capital investment does not depend on the system, unlike the investment for listed companies. Korea's venture capital industry has entered a period of growth, but lack of data has led to a lack of research on venture capital. Based on this background, this study attempts to analyze various factors affecting investment decision criteria of Korea VCs. In this study, I examined the major factors that VCs consider in decision making of investment through literature review, and I have drawn the research question accordingly. I will focus on the characteristics of founders, products / services, markets, financials, and networks that scholars share common investment decision criteria in Korean VCs. For the purpose of this study, the data were collected through the questionnaire surveyed by investment vetters working in current venture capital and analyzed using AHP analysis. Through this study, I tried to understand the Korean venture capital which has been poorly studied and what criteria and priorities Korean VCs make investment decisions in the Korean venture investment environment. The results of this research will contribute to the vitalization of venture investment, which is important for the upbringing of companies, by providing guidelines for establishing investment attraction strategies of venture companies.

Development of the Analysis Methodology for Interrelationship between Transportation Facilities (교통시설 상호연관성 분석방법론 개발)

  • Namkung, Baekkyu;Chung, Sungbong;Chang, Yu-Jin
    • International Journal of Highway Engineering
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    • v.15 no.3
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    • pp.169-176
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    • 2013
  • PURPOSES : Lots of criticism such as over/duplication investment, inconsistency of the policies among local governments and national plans etc. has been aroused due to the policy of supply-driven construction for transportation facilities. Recently, according to the environmental-friendly transportation policy, the investment of railroad has been expanded gradually, however the duplication with existing road facility makes it difficult to construct railroad. Thus it is necessary to evaluate the interrelationship between new project and existing facilities in the planning stage. However the method and the criteria for analyzing the duplication and over-investment of projects are not established in the manual, thus the feasibility of these projects are carried out from the economic point of view. METHODS: First, It reviewed about interrelationship criteria(domestic, overseas) and proposed implications and this study directions. Next, It developed the methods of evaluating independency, competitiveness and complementarity. RESULTS : In this study, the methods of evaluating independency, competitiveness and complementarity etc. are suggested to analyze the interrelationship between transportation facilities. The case study was carried out to examine the applicability of the methods. CONCLUSIONS: The methods raise rationality of decision-making compared to existing one. In the future, these methods are introduced into the manual of pre-feasibility study and feasibility study, more efficient decision-making and investment are expected.

The Impact of Comprehensive Decision-Making of Information Technology Investment on Firm Performance (정보기술 투자의사결정의 포괄적 고려가 기업 성과에 미치는 영향)

  • Park, Choong-Shin;Kim, Joon-S.;Im, Kun-Shin
    • Asia pacific journal of information systems
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    • v.15 no.3
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    • pp.163-186
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    • 2005
  • When firms are confronted with IT investment decision-makings, technical or financial factors are widely considered. However, based on sociotechnical systems theory, it is argued that in addition to the traditional factors, social issues must be considered in the IT investment decision-makings. Even though the strategic criteria of social issues within organization are important for IT investment decision-makings, the social or organizational issues are hardly considered in IT implementation and adoption(Ryan and Harrison, 2000). The objective of this study is to empirically verify how the comprehensive consideration of both of technical and organizational issues related with IT investment affects firm performance through its impact on IT technical capability and IT personnel skills. Senior managers of 153 Korean firms were surveyed, and the collected data were analyzed with PLS technique. The results of the PLS path analysis show that the comprehensive consideration of the technical and social issues affected indirectly firm performance through IT technical capability and IT personnel skills. It is found that the comprehensive consideration had a significant impact on IT technical capability and IT personnel skills, and that IT technical capability and IT personnel skills affected firm performance. IT personnel was also found to affect IT technical capability. Finally, this study found that the consideration of social factors had greater impacts on firm performance than that of technical factors.

A R&D Investment Model for Information and Telecommunications Technology by Group Decision Makers : An Application of Multiple Objective Linear Programming (집단의사결정에 의한 정보통신 기술분야별 R&D 투자배분결정 모형개발 : 다목적선형계획법의 응용)

  • 이동엽;이장우
    • Journal of Technology Innovation
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    • v.7 no.2
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    • pp.21-36
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    • 1999
  • This paper presents a R&D investment model for Information and telecommunications (I&T) technology, which can be used by group decision makers, using multiple objective linear programming (MOLP). The MOLP model involves the simultaneous maximization of three linear objective functions associated with three criteria, which are social, technological, and economic criterion. This model is different from the traditional one which only involves the maximization of economic criterion. The presented problem in this model can be formulated as a problem of optimizing a linear function over an efficient set of MOLP. Its application to the National R&D Project in I&T Industry is also presented. In this application, the Analytic Hierarchy Process (AHP) is proposed to estimate the weights, which are used as the coefficients in each objective function of the MOLP model and in a linear decision function. By solving this problem, it yields a suitable R&D investment ratio to each technology field. It is showed that the MOLP model can be useful decision aid in formulating R&D investment plan in I&T industry which needs to be decided by group decision makers, not by an individual. It is expected that the MOLP model works as the basis for planning R&D investment strategy in I&T industry.

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