A Multidimensional Decision Making Model for Information Technology Investments in Universities

N. Khairudin, M.N. Abdul Hamid

Abstract


Justifying an Information Technology (IT) investment solely on the financial gain or lost has been proven to be difficult due to its intangible benefits. This study examines how non-financial measures can be incorporated to improve the decision on IT investment, particularly the Learning Management System (LMS) in universities. Design Research (DR) was adopted to develop a LMS decision making model which consists of six multidimensional perspectives which are both financial and non-financial measures. The six multidimensional perspectives were derived from the integration of two models; the IT Balanced Scorecard model and Murphy’s “five pillars of benefit realization” model. The model is refined through a series of evaluation by practitioners in Malaysian universities. The final model is then translated into a decision support tool which is tested in the field. The findings show that the use of non-financial measures did improve the decision on choice of LMS. Specifically, IT managers in universities believe that the model helped them to make a well informed decision and provide support for a multi-dimensional model for evaluation of IT investment.


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