ifkad articles

Justifying the Intangibles: Review of Information System Justification Research

Michal Krčál

Although intangible benefits of information systems (IS) can seriously contribute to organizational success (Remenyi et al., 2007), their poor assessment can falsely dismiss IS as uneconomic (Kim et al., 2010; Marsh and Flanagan, 2000). Despite rich research in the field of IS justification (see Schryen, 2013), it seems that this effort yields insufficient outcomes. Organizations still struggle with finding reasons why to invest (or not to) in IS and what benefits such investment will bring, and researchers report lack of knowledge of justification methods (Bernroider et al., 2014). Therefore, this study reviews the past IS justification research with the attention on intangible benefits. As the research of IS justification has broadened and dispersed, mainly literature review studies were analysed. The reviews were identified by various ad-hoc database search queries and by backward and forward citation search. Subsequently, relevant review articles were narratively reviewed with focus on types of methods and possibilities for further research. Finally, according to analysis, taxonomy of methods was designed and further research directions were suggested. This study is the first attempt of justification methods taxonomy since Irani and Love (2002) study. The taxonomy can be used in future research efforts helping researchers to navigate through the domain. Besides, it synthetizes reviews helping another researchers to quickly orient in the research domain as it analyses recent research development in the IS justification field. Practitioners can use this research in order to gain more knowledge about justification methods, as the knowledge of this field is not very spread in companies. This research identified five categories of IS justification methods, financial, strategic, analytic, multi-criteria, process. The ability of most methods to justify intangible benefits of information systems is rather low or non-existent. With current justification methods, companies are unable to properly justify information systems that provide many intangibles. Therefore, instead on focusing on developing other new methods, more effort should be directed into gaining more insight into the practice of justification process in order to understand the reasons why companies struggle to evaluate intangible benefits of information systems.

IN: Proceedings IFKAD 2016 – Towards a New Architecture of Knowledge: Big Data, Culture and Creativity
PP: 84-94