Fuzzy cognitive mapping as a technique for technology management

Summary form only given as follows. Many companies are attaining a significant competitive advantage through the adoption of new technology. However, for senior management to fully commit themselves to the level of expenditure associated with the attainment of a competitive advantage, they need to be convinced of the business justification of such investments. Analysis of the literature demonstrates that a major barrier to the implementation of new technology is with the investment justification and technology management process. Investment justification is considered to be notoriously subjective, difficult, complex and time consuming, with appraisal techniques such as return on investment (RoI), internal rate of return (IRR), net present value (NPV) and payback approaches often only used. These techniques focus on nonstrategic, short-term, tangible benefits, with the `larger´ organisational picture often missing from the formal justification process. The authors of this paper have identified the organisational idiosyncrasies associated with investment justification, with the evaluation process based on the principles of total quality management (TQM). These variables divide the business domain into strategic, tactical, operational and financial dimensions, and can be analysed using fuzzy logic, in the form of a fuzzy cognitive map. This artificially intelligent technique, highlights dependent interrelationships, pertinent during the investment decision making process