Evaluation of Enterprise Information Technologies: A Decision Model Incorporating Strategic and Operational Issues

Joseph Sarkis and R.P. Sundarraj

IEEE Transactions on Systems, Man, and Cybernetics, Part C, Vol. 36, No. 2, pp. 260-273, 2006.

Despite the possibility of short-term financial losses and concerns by executive management of potential failure, enterprise information technologies (EITs) are being implemented by a growing number of Fortune 100 and mid-size corporations in the hope of acquiring long-term benefits.  As information technology assets that are expensive and risky, EITs must be evaluated on the basis of both their productivity gains and their support for corporate reengineering through integration of business processes.  In this paper, we propose a two-stage methodology (involving a combination of the Analytical Network Process and Integer Programming) to evaluate an interdependent set of tangible, intangible, strategic and operational factors that should be considered in EIT evaluation.  We perform sensitivity analyses and conduct tests with real-world data to show the robustness of our methodology and the managerial implication resulting therefrom.  Our paper, which is timely to industry, fills a gap in a topic where there is a paucity of research.


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