Abstract:
IT investment decisions often focus on tangible costs and benefits such as technical,
strategic, and financial issues. Less tangible benefits such as process redesign integration,
bave been largely ignored. Decisions makers who rely solely on these tangible costs and
benefits for their assessment of IT investment value without integrating intangible benefit
consideration may be making sub-optimal decisions and investments. This study looked at
rhe important, yet often overlooked, intangible benefits consideration in the IT investment
decision process with particular focus on process redesign as an intangible benefit.
Survey questionnaires were sent out to a sample of 949 firms in three industries:
healthcare, chemical, and insurance to solicit information from the chief information officer
(CIo) on the level at which they integrate process redesign consideration in the IT
inr-eshnent decision. Several important findings resulted from this research effort. First, the study
irm"nr;fied seven component factors of process redesign and used these factors to measure the
M of process redesign integration into the IT investment decision. Second, the study
mfirmed, empirically, that there was an association between the consideration of tangible and intangible benefits. Those firms that expend large effort or resources towards tangible
benef,rts consideration also spend more effort or resources toward intangible benefits
consideration than otherwise. Third, it was empiricaliy determined that certain process
redesign benefit factors received greater consideration than others. Fourth, it was determined
#mr decision makers considered tangible benefits to be more important than intangible
hmefits consideration and expended a greater portion of effort or resources towards the
mideration of the former. Finally, this study found that the strategic relevance of IT in an
organization was associated with the level of effort or resource deployment towards intangible benefits. Additional areas for further research were also identified.
