Developing a frame of reference for ex-ante IT/IS investment evaluation

Investment appraisal techniques are an integral part of many traditional capital budgeting processes. However, the adoption of Information Systems (IS) and the development of resulting infrastructures are being increasingly viewed on the basis of consumption. Consequently, decision-makers are now moving away from the confines of rigid capital budgeting processes, which have traditionally compared IS with non-IS-related investments. With this in mind, the authors seek to dissect investment appraisal from the broader capital budgeting process to allow a deeper understanding of the mechanics involved with IS justification. This analysis presents conflicting perspectives surrounding the scope and sensitivity of traditional appraisal methods. In contributing to this debate, the authors present taxonomies of IS benefit types and associated natures, and discuss the resulting implications of using traditional appraisal techniques during the IS planning and decision-making process. A frame of reference that can be used to navigate through the variety of appraisal methods available to decision-makers is presented and discussed. Taxonomies of appraisal techniques that are classified by their respective characteristics are also presented. Perspectives surrounding the degree of involvement that financial appraisal should play during decision making and the limitations surrounding investment appraisal techniques are identifie

A project management quality cost information system for the construction industry

A prototype Project Management Quality Cost System (PROMQACS) was developed to determine quality costs in construction projects. The structure and information requirements that are needed to provide a classification system of quality costs were identified and discussed. The developed system was tested and implemented in two case study construction projects to determine the information and management issues needed to develop PROMQACS into a software program. In addition, the system was used to determine the cost and causes of rework that occurred in the projects. It is suggested that project participants can use the information in PROMQACS to identify shortcomings in their project-related activities and therefore take the appropriate action to improve their management practices in future projects. The benefits and limitations of PROMQACS are identified

A rework reduction model for construction projects

Rework is an endemic problem in building construction projects and is an area of research that has received limited attention. Recent research has shown that rework is the primary cause of time and schedule overruns in projects and that rework levels do not significantly differ between current procurement methods despite calls from government for the use of more integrated procurement approaches such as design-and-construct to improve project performance. To reduce the incidence of rework throughout the construction supply chain, data from 161 completed projects were gathered using a questionnaire survey. Stepwise multiple regression was used to determine the significant variables that contributed to rework in projects. In conjunction with previously reported research, these variables were used to develop an alternative procurement model for reducing rework in projects. It is suggested that the proposed model could be used to stimulate interorganizational relations and promote teambuilding during the formative stages of a project, which is essential for reducing design-related reworking

Mapping knowledge management and organizational learning in support of organizational memory

The normative literature within the field of Knowledge Management has concentrated on techniques and methodologies for allowing knowledge to be codified and made available to individuals and groups within organizations. The literature on Organizational Learning however, has tended to focus on aspects of knowledge that are pertinent at the macro-organizational level (i.e. the overall business). The authors attempt in this paper to address a relative void in the literature, aiming to demonstrate the inter-locking factors within an enterprise information system that relate knowledge management and organizational learning, via a model that highlights key factors within such an inter-relationship. This is achieved by extrapolating data from a manufacturing organization using a case study, with these data then modeled using a cognitive mapping technique (Fuzzy Cognitive Mapping, FCM). The empirical enquiry explores an interpretivist view of knowledge, within an Information Systems Evaluation (ISE) process, through the associated classification of structural, interpretive and evaluative knowledge. This is achieved by visualizng inter-relationships within the ISE decision-making approach in the case organization. A number of decision paths within the cognitive map are then identified such that a greater understanding of ISE can be sought. The authors therefore present a model that defines a relationship between Knowledge Management (KM) and Organisational Learning (OL), and highlights factors that can lead a firm to develop itself towards a learning organization

Outsourcing information systems: Drawing lessons from a banking case study

Financial and costs benefits are often put forward as the reasons why organisations decide to outsource. Emerging patterns and trends indicate that today’s outsourcing decisions are often motivated by factors other than cost. Thus, the decision-making process is more complex than it may at first appear. This paper presents findings from a case study from an organisation in the UK banking sector that was motivated to outsource aspects of its information technology/information system (IT/IS). The underlying motives and decision-making process that influenced the bank outsource its IT/IS are presented and discussed. Findings from the case study suggest political perspectives, as well as human and organisational issues influenced the bank’s strategic decision-making to outsource certain aspects of its business. An examination of the case study findings suggests that cost alone is not always responsible for decisions to outsource, as it was found the bank’s outsourcing decision was driven by a series of complex, interrelated motives in a bid to reduce the risks and uncertainties of managing its own technology. Considering the complex nature of the outsourcing process a frame of reference that can be used to assist managers with their decision to outsource IT/IS is propagated. The case study is used to present an organisation’s experiences as to how and why it decided to outsource its IS and thus offers a learning opportunity for other organisations facing similar difficulties. In addition, the case study findings highlight the need to focus greater attention on discriminating between the short and long-term consequences of IT/IS decision-makin

Transforming failure into success through organisational learning: An analysis of a manufacturing information system

This paper describes the idiosyncracies of a case study company, through highlighting issues and problems experienced during their attempts to evaluate, implement and realise the holistic implications of a manufacturing information system. Although the Information System (IS) was operational for a period of time, it was eventually deemed a failure. The reason for this was that a range of human and organisational factors prevented the organisation from embracing the full impact of the system. The eventual success of their information system was realised through a bespoke implementation, based upon a traditional systems development lifecycle that indirectly addressed learning issues following the earlier failed deployment. The paper highlights key issues relating to business success and failure, and then contrasts them alongside the presented case study. In doing so, the authors conclude by proposing methods through which manufacturing information systems can be transformed for business success. This is described achievable through both a realisation in the positioning of the organisation relative to technology management, and the related mapping of human and technological constructs that support information systems related succes

Applying concepts of fuzzy cognitive mapping to model IT/IS investment evaluation factors

The justification process is a major concern for many organisations that are considering the adoption of Information Technology (IT) and Information Systems (IS), and is a barrier to its implementation. As a result, the competitive advantage of many companies is being put at risk because of management's inability to evaluate the holistic implication of adopting new technology, both in terms of on the benefit and cost portfolios. This paper identifies a number of well-known project appraisal techniques used in IT/IS investment justification. Furthermore, the concept of multivalent, or fuzzy logic, is used to demonstrate how inter-relationships can be modeled between key dimensions identified in the proposed conceptual evaluation model. This is highlighted using fuzzy cognitive mapping (FCM) as a technique to model each IT/IS evaluation factor (integrating strategic, tactical, operational and investment considerations). The use of an FCM is then shown to be as a complementary tool which can serve to highlight interdependencies between contributory justification factors

Project pathogens: The anatomy of omission errors in construction and resource engineering project

Construction and engineering projects are typically complex in nature and are prone to cost and schedule overruns. A significant factor that often contributes to these overruns is rework. Omissions errors, in particular, have been found to account for as much as 38% of the total rework costs experienced. To date, there has been limited research that has sought to determine the underlying factors that contribute to omission errors in construction and engineering projects. Using data derived from59 in-depth interviews undertaken with various project participants, a generic systemic causal model of the key factors that contributed to omission errors is presented. The developed causal model can improve understanding of the archetypal nature and underlying dynamics of omission errors. Error management strategies that can be considered for implementation in projects are also discussed

Integrating the IS with the enterprise: Key EAI research challenges

Enterprise Application Integration (EAI) technologies provide the means to integrate strategic business solutions within and across the component parts of organisational information system infrastructures. The continuing development of both digitally integrated business models, through various eCommerce and eBusiness initiatives, has meant that the importance of EAI within enterprise IS, has increased significantly. Noting that EAI incurs not only technological but stakeholder-level commitments, this paper outlines the product of a sustained investigation into key challenges within Enterprise IS and EAI, and provides a framework for future research and investigation into this emerging and evolving area

Transforming Failure into Success through Organizational Learning: An analysis of a Manufacturing Information System

This paper describes the idiosyncracies of a case study company, through highlighting issues and problems experienced during their attempts to evaluate, implement and realise the holistic implications of a manufacturing information system. Although the Information System (IS) was operational for a period of time, it was eventually deemed a failure. The reason for this was that a range of human and organisational factors prevented the organisation from embracing the full impact of the system. The eventual success of their information system was realised through a bespoke implementation, based upon a traditional systems development lifecycle that indirectly addressed learning issues following the earlier failed deployment. The paper highlights key issues relating to business success and failure, and then contrasts them alongside the presented case study. In doing so, the authors conclude by proposing methods through which manufacturing information systems can be transformed for business success. This is described achievable through both a realisation in the positioning of the organisation relative to technology management, and the related mapping of human and technological constructs that support information systems related success. European Journal of Information Systems (2001) 10, 55-66