Investments in it acquisition projects


Problem:

An organization had a history of making regular investments in IT acquisition projects. It consistently spent more on IT acquisitions than its competitors but seemed to gain no advantage from doing so. Its executive committee became concerned with whether and to what extent the projects were actually supporting the organization's strategic goals and objectives. The executive committee decided to hire expert consultants to determine how well each on-going and proposed IT project supports or will support the organization's strategic goals and objectives.

(a) How should the consultants determine if, and how well, each IT project supports the strategic goals and objectives?

(b) What information should the consultants provide to the executive committee to support the consultant's conclusion of how well, if at all, an IT project supports the strategic goals and objectives?

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Finance Basics: Investments in it acquisition projects
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