An empirical analysis on the effects of investment assessment methods on IS/IT project success

Abstract

As organizations’ investments on information systems/information technology (IS/IT) increase, the assessment methods used during IS/IT investment decision-making process holds more and more importance. Since successful IS/IT projects are key to the sustainability of an organization, identifying the factors which have effects on project success carries useful insights. In this study, 18 assessment methods are identified based on the literature. A novel classification method is proposed and assessment methods are classified into financial, strategic, and organizational categories. A novel rule-based method for determining the size of IS/IT projects is also proposed. Detailed information on project characteristics, employed IS/IT assessment methods, and project success is collected for 110 real-world IS/IT projects. The collected data is utilized in ANOVA and Regression tests to examine the factors which affect project success. Use of organization-related assessment methods, which is proposed in this study, is found to increase the success rate of the projects. Obligation towards the project and use of multi-criteria methodology have significant relationships with project success whereas project size, use of gut feeling during evaluation, and employed system development methodology do not have statistically significant impacts on project success.