Analyzing The Value Of It Investments - 1725 Words

Literature Review Assignment By Pranav Madhiraju Subject: ERGM 6617 Instructor: Dr. Gokhan Eglimez Article Info: Title: Quantifying the value of IT-investments. Author: C.Verhoef. Journal: Elsevier Year: 2004 Introduction: In the business world investments are made, taking into account the discounted cash flow (DCF) analysis, net present value (NPV) and basically the thumb rule being of return on investment (ROI) is not too low and internal rate of return (IRR) is not too close to the discounted rate. These factors are the frame work where in companies/business depend on making an investment. â€Å"While we have these well-established principles applies in many areas, we observe that there is hardly any quantities financial analyses for major IT-investments. This paper’s purpose is to quantify the value of investments in software systems. In this paper they have adopted a classical risk –adjusted discounted cash flow model and used it towards the field of information technology (IT).† Literature Review: As mentioned in the introduction to put this paper in the right perspective, can be said that the author talks about the basic principles of investment and how it cannot be considered the thumb rule for investments in the IT sector. The author in this paper shows us how to deploy financial techniques to quantify the value of IT-investments. The author takes an IT investment example published in a magazine and uses and adapts this example to illustrate how you canShow MoreRelatedCompany and Marketing Strategy: Partnering to Build Customer Relationships1465 Words   |  6 Pagescustomer value 4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it 5. 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