Building framework for ICT investments evaluation: value on investment perspective

Abstract

Innovation in the field of information and communication technology (ICT) requires organizations to makeprompt investments in providing customers with updated resources. Rapid growth in the field of ICT increases theresponsibility of decision-makers in terms of whether to invest or not. This research aims to support such decision makingby providing a comprehensive framework for the evaluation of ICT investment. Return on investment (ROI) is thecommon method used to assess the benefits generated from any type of investment using financial factors. However, thisresearch primarily supports the importance of measuring value on investment (VOI) from ICT investments. This type ofevaluation will provide more comprehensive results based on the influence of stakeholders through investments. The vastliterature reviewed in this article discusses the limitations of ROI and evaluates ICT investment to present severalpractitioners’ points of view regarding its limitations and importance. Finally, this research proposes a five-phased strategyof evaluation involving investments, exploring from the point of investment until impact is made on the stakeholder. Astepwise description of the framework is presented in the methodology section to guide decision-makers in the furtherimplementation of this technique to protect their assets and evaluate the investments in an extensive way.