TADS: a knowledge support methodology and system for allocating the firm´s information technology budget

The authors outline an important problem in the management of information technology (IT) for large firms, i.e., how to allocate the annual IT budget such that it meets the short term profit maximizing needs of the firm and fits into the firm´s longer term strategic stance. A new approach called targetted allocation of developmental spend (TADS) is described for formulating and solving the problem. The approach has been packaged into the TADS software which enables the firm to choose which IT projects it should support for the next year and how much should be allocated for each project. The portfolio of projects chosen fits in with the firm´s longer term strategic aims and takes into account the financial benefits as well as the risks incurred. An example taken from a retail bank is used to illustrate the TADS approach and system