AIS Electronic Library (AISeL)
Recent research has shown that companies face considerable difficulties in implementing a value-based management of their IT portfolios. This paper therefore presents an approach for measuring and managing the business value of IT investments. To ensure practicability, the authors' approach is derived from a set of practice-based requirements extending previous empirical work. In their conceptual model they distinguish between capital budgeting and ongoing value management. For capital budgeting they propose to assess IT investments according to their expected business value by using net present value analysis and a scoring model.