A Decision Model for Strategic Evaluation of Enterprise Information Technologies

Joseph Sarkis and R.P. Sundarraj

Information Systems Management Vol. 18, No. 3, pp. 62-72, 2001.

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 else, 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 paper 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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