A Decision Model for Strategic Evaluation of Enterprise Information Technologies

Abstract

Enterprise information technologies (EITs), which are strategic systems seeking to integrate the processes and databases of the entire organization and beyond, require a significant investment of money and human resources in return for the promise of a global business model and its associated far-reaching benefits. Their evaluation/justification must be completed with organizational goals and requirements included in the decision, or the organization could lose financially and competitively. Besides traditional financial models, e.g., ROI (return on investment), that are primarily meant for short-term financial justification purposes, there is a paucity of methods for the evaluation of the strategic and intangible costs and benefits that EITs afford organizations as a whole. This article introduces the use of a robust quantitative technique called the analytical hierarchy process (AHP) that can integrate a diverse range of factors (strategic and operational, and tangible and intangible) into one model. the approach can be easily understood by managers and analysts and has a history of application to other types of strategic justification decisions.

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