Korean Management Science Review (경영과학)

The Korean Operations Research and Management Science Society (한국경영과학회)
권호 표지

Measuring Return on Government Investment in Small Business Networking Project

정보화 사업의 정부 투자 효과 분석 : 소기업 네트워크화 사업을 중심으로

  • Published : 2004.11.01
Download PDF
⟨ Previous Next ⟩

Abstract

This paper discusses how to develop a comprehensive performance evaluation framework and measure Quantitative and Qualitative benefits of 'Small Business Networking Project' which has been supported by Korean Government since September 2001. Employing BSC framework to identify various benefits realized from the project, we suggest specific procedure and method of deriving ROI (return on investment) for analyzing the benefits against the costs associated with the project, where we restrict our attention to the government investment. From the study, we show that ROI analysis can be served as a useful means to validate government projects as well as uncover specific problem areas to handle in the course of implementing them. Moreover. the ROI analysis we present in this paper can also be applied to pre-evaluate similar government investments.

Keywords

References

  1. 강무정, '공공 분야 정보화 투자효과분석 적용 사례 : 관세청'，2002 기업정보화 심포지엄 : 기업정보화 투자효과분석 방법론 및 사례, 기업정보화지원센터, 2002
  2. 기업정보화지원센터，‘정보화 투자효과 분석’，연구보고서，2002
  3. 문홍근, ‘금융 분야 정보화 투자효과분석 적용 사례 : 삼성캐피탈', 2002 기업정보화 심포지엄 : 기업정보화 투자효과분석 방법론 및 사례, 기업정보화지원센터, 2002
  4. 이윤석, 이석준, 문홍근, '전사적 정보화 투자성과 평가 방법론의 개발과 적용 : 삼성그룹사례', lnformation Systems Review', 제6권(2004), pp.85-102
  5. 임병도，'서비스 분야 정보화 투자효과분석적용 사례 : KT', 2002 기업정보화 심포지엄 : 기업정보화 투자효과분석 방법론 및 사례, 기업정보화지원센터，2002
  6. 한국정보산업연합회，'2003 정보화투자평가(IT ROI) 현황 조사'，조사보고서，2003
  7. Apostolopoulos, T.K. and K.C. Pramataris, 'Information Technology Investment Evaluation : Investments in Telecommunication Infrastructure,' International Journal of Information Management, Vol.17(1997). pp.287- 296
  8. Benaroch, M. and R.J. Kauffman, 'A Case for Using Real Options Pricing Analysis to Evaluate Information Technology Project Investments,' Information Systems Research, Vol.10(1999), pp.70-86
  9. Brynjolfsson, E., 'The Productivity Paradox of Information Technology,' Communications of the ACM, Vol.35(1993), pp.66-77
  10. Byrd, T.A. and T.E. Marshall, 'Relating Information Technology Investment to Organizational Performance : A Causal Model Analysis,' Omega, Vol.25(1997), pp.43-56
  11. Coleman, T., 'Investment Appraisal : Total IT,' Accountancy, Vol.113(1994), pp.68-70
  12. Dehning, B. and T. Stratopoulos, 'DuPont Analysis of an IT -enabled Competitive Advantage,' International Journal of Accounting Information Systems, Vol.3(2002), pp.165-176
  13. Farbey, B., T. David and L. Frank, 'The Great IT Benefit Hunt,' European Management Journal, Vol.12(1994), pp.270-279
  14. Gang, H. and G. Bradley, 'Measuring the Performance of IT Services: An Assessment of SERVQUAL,' International journal of Accounting Information Systems, Vol.3(2002), pp.151-164
  15. Giaglis, G.M., N. Mylonopoulos and G.I. Doukidis, 'The ISSUE Methodology for Quantifying Benefits from Information Systems,' Logistics Information Management, Vol.12(1999), pp.50-62
  16. Grembergen, W.V. and R.V. Bruggen, 'Measuring and Improving Corporate Information Technology through the Balanced Scorecard,' The Electric Journal of Information Systems Evaluation, Vol.1(1997),(http://www.iteva.rug.nl/ejise/index.html)
  17. Gunasekaran, A., P.E.D. Love, F. Rahimi and R Miele, 'A Model for Investment Justification in Information Technology Projects,' International Journal of Information Management, Vol.(2001), pp.349-364
  18. Hallikainen, P., J. Heikkila, K Peffers, T. Saarinen and F. Wijnhoven, 'Evaluating Information Technology Projects in Finland: Procedures, Follow-through, Deci-sion-making and Perceived Evaluation Quality,' Journal of Global Information Management, Vol.6(1998), pp.23-33
  19. Hayes, M., 'Get a Grip on IT Investments,' Information Week, Vol.25(2002), p.60
  20. Hoffman, T., 'How Will You Prove IT Value?,' Computerworld, Vol.37(Jan. 2003), p.26
  21. Huerta, E. and P.J. Sanchez, 'Evaluation of Information Technology: Strategies in Spanish Firms,' European Journal of Information Systems, Vol.8(1999), pp.273-283
  22. Jones, M.C. and R.C. Beatty, 'User Satisfaction with EDI : An Empirical Investigation,' Information Resources Management Journal, Vol.14(2001), pp.17-26
  23. Kaplan, R.S. and D.P. Norton, The Balanced Scorecard: Translating Strategy into Action, Boston, Harvard Business School Press, 1996
  24. Kudyba, S. and R Diwan, 'Increasing Returns to Information Technology,' Information Systems Research, Vol.13(2002), pp.104-111
  25. Lee, J.W. and S.H. Kim, 'Using Analytic Network Process and Goal Programming for Interdependent Information System Project Selection,' Computers and Operations Research, Vol.27(2000), pp.367-382
  26. Li, M. and L.R. Ye, 'Information Technology and Firm Performance : Linking with Environmental, Strategic and Managerial Contexts,' Information and Management, Vol.35(1999), pp.43-51
  27. Lillrank, P., S. Holopainen and T. Paavola, 'Analyzing Productivity with the Enabler-Effect Map,' International Journal of Production Economics, Vol.78(2002), pp.69-78
  28. Massaro, K., 'ROI Reigns Supreme,' Wall Street & Technology, New York: Dec, Vol.8(2002)
  29. May, T.A., 'The Death of ROI : Re-thinking IT Value Measurement,' Information Management & Computer Security, Vol.5 (1997), pp.90-95
  30. McEachern, C., 'The Proof is in the Project,' InformationWeek, Dec 9(2002), pp.66-68
  31. Milis, K. and R Mercken, 'The Use of the Balanced Scorecard for the Evaluation of Information and Communication Technology Projects,' International Journal of Project Management, Vol.22(2004), pp.87-98 https://doi.org/10.1016/S0263-7863(03)00060-7
  32. Palvia, P.C. and S.C. Palvia, 'An Examination of the IT Satisfaction of Small-business Users,' Information and Management, Vol.35(1999), pp.127-137
  33. Phillips, J.J., 'Measuring ROI: Progress, Trends and Strategies,' in In Action: Measuring Return On Investment, American Society for Training and Development (Eds,), Vol.1(1994), p.16
  34. Powell, P., 'Information Technology Evaluation : Is It Different?,' The Journal of the Operational Research Society, Vol.43(1992), pp.29-42
  35. Rai, A., R Patnaakuni and N. Patnayakuni, 'Technology Investment and Business Performance,' Communications of the ACM, Vol.40(1997), pp.89-97
  36. Remenyi, D. and M. Sherwood-Smith, 'Maximise Information Systems Value by Continuous Participative Evaluation,' Logistics Information Management, Vol.12 (1999), pp.14-31
  37. Serafeimidis, V. and S. Smithson, 'The Management of Change for Information Systems Evaluation Practice : Experience from a Case Study,' International Journal of Information Management, Vol.16(1996), pp.205- 217
  38. Sethi, V. and W.R. King, 'Development of Measures to Assess the Extent to Which an Information Technology Application Provides Competitive Advantage,' Management Science, Vol.40(1994), pp.1601-1627
  39. Shafer, S.M. and T.A. Byrd, 'A Framework for Measuring the Efficiency of Organizational Investments in Information Technology Using Data Envelopement Analysis,' Omega, Vol.28(2000), pp.125-141
  40. Shao, B.B.M. and W,T, Lin, 'Measuring the Value of Information Technology in Technical Efficiency with Stochastic Production Frontiers,' Information and Software Technology, Vol.43(2001), pp.447-456
  41. Sircar, S., J,L. Turnbow and B. Bordoloi, 'A Framework for Assessing the Relationship between Information Technolgy Investments and Firm Performance,' Journal of Management Information Systems, Vol.16(2000), pp.69-97
  42. Strassman, P.A., 'Management Productivity As an IT Measure,' in Measuring Business Value of Information Technologies, P. Berger, J,G. Kobielus and D. Sutherland (Eds)., ICIT Press, Washington D.C., (1988), pp.17-55
  43. Stratopoulos, T. and B. Dehning, 'Does Succesful Investment in Information Technology Solve the Productivity Paradox?,' Information and Management, Vol.38(2000), pp.103-117
  44. Straub, D., M. Limayem and E. Karahanna-Evaristo, 'Measuring System Usage: Implications for IS Theory Testing,' Management Science, Vol.41(1995), pp.1328-1342
  45. Teo, T.S.H. and P.K. Wong, 'An Empirical Study of the Performance Impact of Computerization in the Retail Industry,' Omega, Vol.26(1998), pp.611-621
  46. Torkzadeh, G and W.J. Doll, 'The Development of a Tool for Measuring the Perceived Impact of Information Technology on Work,' Omega, Vol.27(1999), pp.327-339
  47. Vivant, B., 'Information Technology Metrics,' The Journal of Bank Cost and Management Accounting, Vol.12(1999), pp.11-38
  48. Ward, J., P. Taylor and P. Bond, 'Evaluation and Realisation of IS;1T Benefits : An Empirical Study of Current Practice,' European Journal of Information Systems, Vol.4(1996), pp.214-225
  49. Willcocks, L. and S. Lester, 'Beyond the IT Productivity Paradox,' European Management Journal, Vol.14(1996), pp.279-290