The Use of Decision Criteria in Selecting Information Systems/Technology Investments

In a competitive environment, selecting and effectively pursuing the right information systems/technology (IST) investments can be a key factor in sustaining corporate viability and prosperity. This study examines the criteria used by 80 organizations in allocating strategic IST resources. Senior executives were asked to indicate which of 15 criteria they use in deciding among competing projects. They also identified how frequently the criteria are used and ranked them by importance. The results indicate that criteria such as the support of explicit business objectives and response to competitive systems are now important in selecting IST investments. Although financial criteria are used by most organizations, the extent of analysis and application appears to leave room for improvement.