Establishing the Value of Information Systems

Information systems (ISs) are used by high-level management to support the decision-making process. The decision to proceed from an initial IS evaluation to a costly, in-depth analysis must be based upon the value of using the IS. Management tends to avoid objective evaluation of an IS because many of the benefits (and costs) are intangible and difficult to quantify with precision. However, imprecise data can be used to provide an objective evaluation of the benefits of an IS. Such an evaluation may serve as a “gate keeper” to screen out unjustifiable ISs before a costly analysis is performed.