Information technology investment evaluation: Investments in telecommunication infrastructure

• Published in: International journal of information management Vol. 17; no. 4; pp. 287 - 296
• Main Authors: Apostolopoulos, T.K., Pramataris, K.C.
• Format: Journal Article
• Language: English
• Published: Oxford Elsevier Ltd 01-08-1997; Elsevier
• Subjects: Economic aspects : information market, information industry; Evaluation; Exact sciences and technology; Information and communication sciences; Information economics. Information policy; Information science. Documentation; Investment; Library and information science. General aspects; Sciences and techniques of general use; Telecommunications; Technicoeconomic study; Economic study; Firm management; Information technology; Information infrastructure; Information policy; Firm; Investment; Telecommunication infrastructure
• ISSN: 0268-4012; 1873-4707
• DOI: 10.1016/S0268-4012(97)00006-6

Evaluation of investments in information technology is quite a difficult task, difficulties being both conceptual and functional. The fact that the investment's performance is very much dependent on the way a certain information technology project is implemented renders the evaluation procedure even more difficult. In this paper we propose a certain methodology for evaluating investments in information technology, placing special emphasis on investments in telecommunications infrastructure. In the first place, assessment of the alternative implementations/design solutions is conducted and selection of the one best satisfying user and system requirements is selected. At a second level, the selected alternative is compared with the present situation so that the expediency and feasibility of assuming the investment is determined. Evaluation is based on both economical and technical criteria.