Journal of Korea Society of Digital Industry and Information Management (디지털산업정보학회논문지)

Korea Society of Digital Industry and Information Management (디지털산업정보학회)
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A Study on the Factors for IT Investment Justification

IT 투자 정당화 요인에 관한 연구

  • Received : 2015.10.28
  • Accepted : 2015.12.01
  • Published : 2015.12.30
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Abstract

Although actual business environment is getting difficult and hard, IT companies tend to shy away from of annual investment. Many firms have already reached the 25 percent level. However, the profit and the result of their annual investment needs to be evaluated objectively. IT investment analysis usually proceeds by comparing benefits and costs of an IT investment. Much of the problem derives from the historical treatment of IT as an overhead expense rather than a capital asset. What is most worrying about the current situation is the pressure to take a very short-term view of IT. Therefore, this research aims to analyses and justify the necessity of Visionary IT Investment. For this, it is crucial to identify the factors, which affect positively Visionary IT Investment and understand the role of CIO and explain the result of Visionary IT Investment, which is differed to related business and by different business environment. As a result of this study, the legitimacy of IT Investment is proved through analyzing the business value of not investing and cost-avoidance strategies.

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References

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