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The paper presents an approach for defining ICT investment proposals. The approach was developed on the authority of the Dutch Ministry of Transport, Public Works and Water Management. The Ministry was confronted with a growing amount of ICT investment proposals. Since there was no format for describing a proposal and no procedure for obtaining the data on the basis of which a proposal was described, the decision to select proposals for funding missed any kind of rationality. Proposals differed enormously and hence were incomparable. The evaluation of existing ICT assessment methods showed that there was not any method that would meet the expectations and demands of the Ministry. The main points of criticism concentrated on the limitation of applying a fixed set of data for describing a project proposal and the absence of a process to support the selection of a meaningful set of data to describe a project. Inspired by the multi‐criteria score method of Parker a tailor‐made approach for defining ICT investment proposals was developed, taking into account the characteristics of the governmental organization. In this paper, the approach as well as the developmental process with regard to this approach are presented. The overall conclusion is that a tailor‐made approach, which is developed with the full cooperation of the user organization, has considerable advantages since local knowledge and expertise is incorporated in this type of approach.
Journal of Enterprise Information Management – Emerald Publishing
Published: Aug 1, 2004
Keywords: Cost benefit analysis; Investment appraisal; Communication technologies
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