The Business Value of IT: A Conceptual Model for Selecting Valuation Methods

Abstract

The relation between IT and value is a complex and disputed one. Many studies are not decisive in their results. This paper presents an overview of approaches to the `quest for value' and identifies the qualities of and issues with each approach. It adds several new insights, including what's missing from most approaches: taking into account the nature of the investment. From this notion a conceptual model to select the most appropriate valuation approach is developed.