Investment evaluation within project management: an information systems perspective

This paper is seeking to make a contribution through exploring project managementfrom the perspective of information systems (IS) investment evaluation.Organizational investments in IS are significant in financial terms and, as aresult, management would appear set to increasingly scrutinize such expenditurethrough tighter forms of decision-making and corporate governance. Inturn, this has increased the motivation of project managers toappropriately evaluate the impact of their IS before,during and after the investments are signed off. Thisperspective is not restricted to any one industry sector, with the authorseeking motivation for a better understanding of investment evaluation within aproject management context. This paper sets out to explain why andhow investment evaluation should be embedded in project managementin order to support an increase in the effectiveness of project management,thereby increasing the prospects of project success. While doing so,the reader will be provided with several touch-points that serve to outline thepurpose and challenges facing those seeking to evaluate their investments. Theauthor starts off with a contextualization of project management and its phasedactivities, such that a clear understanding of the contribution that investmentevaluation plays within robust project management can be demonstrated. Then, theperspective of investment versus consumption is presented, groundedwithin the strategic grid, which classifies information technology-basedprojects as either: strategic, turnaround, factory or support. The author thenpresents evaluation as a life-cycle process, where evaluation is classified intofour distinctive phases, namely ex-ante evaluation, metrics,command and control and ex-post evaluation, in doing so,emphasizing that evaluation needs to be seen as a process that runs through thelife cycle of a project rather than as a hurdle that needs to be cleared toensure financial approval.