Object oriented value and cost analysis for information technology investments

A cost and value analysis framework for IT investment choice is presented which offers an alternative to existing ad hoc models arising from traditional accounting and financial analysis. It resolves certain problems in determining value and cost chains which arise from the complex relationships underlying the implementation and cost justification of IT investments. These complexities limit the accuracy and usefulness of traditional accounting models which are based on a linear, matrix-based model of a firm´s activities. The formal decision models developed in this paper should help information systems professionals regain credibility in IT investment decision making-a prospect which promises to be increasingly important in the information-intensive and frugal corporate environments of the 1990s