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IT investment

The study found that IT investment increases organizational strategic and economic performance, along with financial value of the organization by reducing costs and increasing efficiency and customer satisfaction. Though value being interpreted in various forms, and is hardly interpreted for the impact of IT investment, the study observed that total value of the organization increases with IT investment of the organization in the current day world.

In order to accumulate the greatest returns from investment in IT that enhance and balance critical business processes, investments in IT capital must be coupled with investments in organizational assets through practices such as process redesign, employee empowerment, training, and decentralized decision-making. If IT investment is aligned with the business strategy of organizations, organizations can grasp greater return on IT investment. Also firms are interested in new investment to raise efficiency of the system in administrative work and technical work.

This makes IT investment as a non predictable and continuous process. The adoption of IT needs timely infrastructure or change in the infrastructure. So, this leads to cost overruns according to the already planned budget. So, investment on infrastructure playing major role while investment in IT and also it is investment on infrastructure is continuous by

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organizations. Infrastructure investment is long term in nature and often it takes the central part of the investment. McKay and Brockway cited in Peter Weill, 1992, estimate IT infrastructure accounts for between 35 and 40% of total IT investment of the organization

Conclusion The investment in IT has many advantages to the organizations not only for the effective improvement in process but also in enhancing the decision making process and accessing of the data in speed manner in any where with in the organization and the employees can access the necessary data from any where due to the decentralization of authority. The information system management is improving the performance of the organizations. The success of investment in IT depends on how one can integrate and use this technology to solve the organization’s requirements.

The information technology investment management is part of strategic planning. Many companies are getting little returns on investment in IT. John Ward said that many organizations are facing the problem of delivering value for money from Information Technology investments. The reason for this is that business managers of organizations and manager of IT systems are having the different goals. Because of this, investments on new projects of IT are failing to match the demands of the business. In order to get returns from IT investments, organizations has to influence the business mangers not technology and technical people.

The adoption of information technology not only encourages the efficiency of the organization it also encourages the GDP of the country. The IT investment management drives the all the business process including human resources, finance, infrastructure etc. IT investments are made to achieve a broad range of management objectives. IT investment is influencing the performance of the organizations in many ways. IT is providing the competitive advantage by facilitating rapid response to changing needs in the market place.

In order to facilitate the better decision making process, the IT provides the information in appropriately and accurately. IT reduces the expenses in business by replacing the manual process and automating transactions of the organizations. And also IT is providing the flexibility to handle a variety of customers’ needs without cost increases, technological platform to enable other business systems. Recommendations: As information systems are part of the structure, developing and maintaining of these system becoming complex.

In order to meet the global strategies of IT, the well defined IT infrastructure and architecture is required. In order to reduce the investment in infrastructure organizations has to discuss the challenges in infrastructure funding with a view of role of IT, management process, and staff organization. The business units requires infrastructure but those are unwilling or unable to build their own infrastructure due to the technical or financial reasons. In those cases the organization can opt for information technology outsourcing when experiencing the problem in infrastructure investment.

The organizations have control over the necessary resources to maintain and upgrade those infrastructure components. The plan of investment in IT has to include the significant expansion in the network infrastructure like enhancement of instructional methods through the use of computer technology. The organizations are experiencing the problem of human infrastructure while investing in IT. In order to overcome this problem the organizations can train the talented and interested people those already present in the organizations instead of investing in recruiting the experienced people.

The disaster can effect the information technology in organizations and causes to problems to business continuity of the organizations. Organizations have to investment much amount to recover the disaster if not panned and prepared with a proper IT investment plan. Adopting the ITIL frame work along with information technology helps the organizations to overcome unexpected and unplanned problem in infrastructure.

References:

Adam D. Denbo, R. & W. Guthrie. Prioritizing IT Projects: An Empirical Application of an IT Investment Model. Retrieved 20 October 2007. <http://www. iima.org/CIIMA/CIIMA%20V3%20N210%20Denbo. pdf> APPLICATION INTEGRATION RESEARCH. Retrieved 21 october,2007 <http://www. infoedge. com/searchprods. asp? c1=nav&source=related&catcode=ai Are Your IT departments Plans and Your Organizations Business Goals at Odds?. 2004. Retrieved 14 October 2007 . http://www. it-analysis. com/research. php? code=IN-6002> Bardhan, I. ; Bagchi, S. ; & Sougstad, R.. A real options approach for prioritization of a portfolio of information technology projects. Retrieved 13 October 2007. http://ieeexplore. ieee. org/Xplore/login. jsp? url=/iel5/8934/28293/01265499. pdf? arnumber=1265499>

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