Date of Submission:
Justification of investment in IT projects
There is a significant connection between the investments that are made in IT projects and the profitability that it achieves through the projects. It has been stated by few research scholars that IT projects help in reducing the operational expenses of the company. It has been proved using data that is obtained from above 400 firms across the globe. There is a positive impact of the investments that is made in IT projects on the overall productivity and profitability that is generated in a firm. This has been possible due to the reduction in the costs and increase in the revenue generation through the use of IT system (Mithas, Tafti, Bardhan, & Goh, 2012). It is very well stated that, “Information Technology and Business are becoming inextricably interwoven”.
IT serves to be one of the core factors that is responsible for development of strategic mechanisms within an organization. It plays an important role in the development of a business strategy. IT projects are the ones that are developed for maximize the capabilities that are existing in the business and also help in developing new opportunities that have the potential of taking the business to great heights (Drnevich & Croson, 2013). There is one more quote that states that, “The way you handle Information Technology in your company is going to determine the success of your business”.
Describe whether you think most projects should include a business case before the project sponsors officially approve the project.
A business case is one form of description of the policy, plans and strategies that are related to the implementation of a new decision in the company as seen in the case of JWD. It helps the main elements that tend to be the project sponsors in the project like the stakeholders, board of directors, important decision makers as well as the public who make large investments in the project. It provides them with an extensive framework that would provide them with a complete guidance regarding making of decision that is related to the approval of project and investing in it.
Drnevich, P. L., & Croson, D. C. (2013). Information Technology and Business-Level Strategy: Toward an Integrated Theoretical Perspective. . Mis Quarterly, 37(2), , 483-509.
Mithas, S., Tafti, A. R., Bardhan, I., & Goh, J. M. (2012). Information technology and firm profitability: mechanisms and empirical evidence. . Mis Quarterly, 205-224.