A Gap Between Theory and Practice in the Evaluation of ICT Investments. A Literature Review.

Abstract

All benefits obtained from the implementation of investments in Information and Communication Technologies (ICTs) are sources of value for the investing firm. However, it has been considered that decision makers lack a structured methodology or a well-defined framework for evaluating said investments by integrating tangible and intangible benefits. Recent studies proffer empirical evidence that decision makers focus their analysis on quantifiable economic benefits while neglecting intangible benefits. A review of the specialized literature was conducted resulting in the identification of a gap between theory and practice in the evaluation of ICT investments. Even though theorists propose evaluation methods with quantitative and qualitative approaches, decision makers tend to focus their analysis on quantifiable economic benefits and limit the estimation of intangible benefits to subjective judgments. This paper organizes and structures the teachings of the specialized literature reviewed and provides a basis for future work that may aim to contribute to the development of new methodology for estimating the intangible value impact of ICT investments, and thus reduce the identified gap.

Keywords

• decision makers
• evaluation methods and techniques
• evaluation of ict investments
• gap between theory and practice
• tangible and intangible benefits
• value contribution