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IT Payoff, The: Measuring the Business Value of Information Technology Investments by Rajiv Kohli, Sarv Devaraj

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Chapter 8. Technology Justification Models

Understanding the technology justification models can make the difference between anecdotal support and objective evidence of the business value of IT investment. Managers need to learn how to formulate business relationships into mathematical relationships and interpret findings resulting from quantitative models. Senior management is more likely to be persuaded to approve IT investment through scientifically sound analysis rather than political or perception means.

The purpose of the justification models is to convert the relationship between IT investment and anticipated payoff into a logical or mathematical form, while accounting for other factors that might affect the measurement along the way. Primarily, ...

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