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Understanding the impact of business cases on IT investment decisions: An analysis of municipal e-government projects
Authors:Egon Berghout  Chee-Wee Tan
Affiliation:1. Department of Innovation Management & Strategy, Faculty of Economics and Business, University of Groningen, The Netherlands;2. Department of IT Management, Copenhagen Business School, Denmark
Abstract:This study synthesizes the extant literature to derive an integrative developmental framework for IT business cases that can be applied to diagnose the feasibility of technological investments. We then construct a theoretical model that postulates the impact of IT business case elements on the initial cost estimates of technological investments. Subsequently, our theoretical model is subjected to empirical validation through content analysis of IT business cases developed for municipal e-government projects. Findings indicate that the richness of the richness of business cases translates to more initial costs being identified in technological investments, thereby conserving resources for the organization through informed investment decisions.
Keywords:Business case  Decision making  Information systems  Information management  IT assessment  IT evaluation  Economies of scale
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