short definition according to" information technology investment management "of 1)Analytic

hierarchy process (AHP) 8)Application software 2)Competitive advantage 3)Direct conversion

4)Information technology (IT) 5)Information technology investment 6)Management information
systems (MIS) 7)Managerial risks 8)Operational planning 9)Parallel conversion 11)Personal computer
(PC) 10)Phased conversion 12)Physical risks 13)Productivity paradox 14)Sequential decision process
15)Stakeholders 16)Strategic planning 17)System software 18)Tactical planning 19)Pilot conversion
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Here are short definitions for the terms according to "information technology investment
management":

1. Analytic hierarchy process (AHP): A decision-making technique that helps prioritize options
by structuring complex problems into a hierarchy of criteria and alternatives.
2. Competitive advantage: A unique advantage that a company gains over its competitors
through various means, including the effective use of information technology.
3. Direct conversion: The immediate replacement of an old system with a new one, often
involving a complete transition without any parallel operation.
4. Information technology (IT): The use of computers, software, networks, and related
technologies to store, process, transmit, and manage information.
5. Information technology investment: Allocation of resources, typically financial, into IT assets,
projects, or initiatives to achieve specific business objectives.
6. Management information systems (MIS): Systems that provide managers with information
and reports to support decision-making and organizational activities.
7. Managerial risks: Risks associated with the decisions made by managers, including those
related to IT investments and strategies.
8. Operational planning: The process of setting specific goals and strategies for day-to-day
operations within an organization.
9. Parallel conversion: The simultaneous use of both old and new systems during a transitional
period to minimize disruptions.
10. Phased conversion: The gradual transition from an old system to a new one in multiple
phases or stages.
11. Personal computer (PC): A small, self-contained computer designed for individual use.
12. Physical risks: Risks associated with the physical security and integrity of IT assets, such as
hardware and data centers.
13. Productivity paradox: The phenomenon where increased IT investment does not always lead
to proportional increases in productivity.
14. Sequential decision process: A decision-making approach where choices are made in a
predetermined order, typically one after the other.
15. Stakeholders: Individuals or groups who have an interest in or are affected by the outcomes
of an IT investment or project.
16. Strategic planning: The process of defining long-term goals and objectives and developing
strategies to achieve them.
17. System software: Software that manages and controls computer hardware and provides a
platform for running application software.
 18. Tactical planning: The process of developing short-to-medium-term plans and actions to
implement an organization's strategic goals.
19. Pilot conversion: The initial implementation of a new system in a limited area or with a small
group of users to assess its effectiveness before full deployment.

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Discussion Questions according to 'information technology investment management " 1. Why is the
“productivity paradox” important in IT investment decision-making? 2. Why is there such diversity in
the types of IT investment decision-making problems? 3. What is the relationship between the
components of an MIS and the use of IT investment decision-making methodologies? That is, give
examples of the MIS components that might require an investment. 4. Why is it important to
consider the limitations of IT investment decision-making methodologies in an analysis? 5. Why is it
important to see where IT investment decision-making fits into the overall planning of business
organizations? discuss briefly
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1. Why is the "productivity paradox" important in IT investment decision-making?
 The productivity paradox refers to the observation that increased investments in IT
don't always lead to expected improvements in productivity. This is crucial in IT
investment decision-making because it challenges the assumption that more
spending on technology will automatically result in better business outcomes.
Understanding this paradox prompts organizations to critically evaluate their IT
investments, ensuring that they align with strategic goals and can deliver tangible
benefits.
2. Why is there such diversity in the types of IT investment decision-making problems?
 The diversity in IT investment decision-making problems stems from various factors,
including differences in organizational goals, industries, technologies, and market
conditions. Each organization faces unique challenges and opportunities, requiring
tailored IT investment strategies. Moreover, the rapid evolution of IT introduces new
complexities, making it essential to adapt decision-making processes to the specific
context.
3. What is the relationship between the components of an MIS and the use of IT investment
decision-making methodologies? That is, give examples of the MIS components that might
require an investment.
 Management Information Systems (MIS) components, such as data storage and
processing, reporting and analysis tools, and communication infrastructure, often
require investments in IT. For example:
 Data storage and processing components may require investments in
scalable databases and servers to handle growing data volumes.
 Reporting and analysis tools may require regular updates or the adoption of
advanced analytics platforms.
 Communication infrastructure may need investments to support remote work
or improve network security.
 4. Why is it important to consider the limitations of IT investment decision-making
methodologies in an analysis?
 Recognizing the limitations of IT investment decision-making methodologies is
crucial for making informed choices. Some limitations may include biases in data,
assumptions, or models used in decision-making. Acknowledging these limitations
helps organizations avoid overreliance on quantitative models and encourages a
more holistic approach that considers qualitative factors and expert judgment,
improving the accuracy of investment decisions.
5. Why is it important to see where IT investment decision-making fits into the overall planning
of business organizations? Discuss briefly.
 IT investment decision-making must align with the overall planning of business
organizations for several reasons:
 Strategic Alignment: IT investments should support the organization's
strategic goals and objectives. Integrating IT decision-making into overall
planning ensures that resources are allocated to projects that contribute to
the business's long-term success.
 Resource Allocation: Organizations have limited resources, and IT investments
compete with other initiatives for funding. Proper alignment ensures that
resources are allocated efficiently across different business functions.
 Risk Management: Integrating IT investment decisions into overall planning
allows organizations to assess and mitigate risks comprehensively,
considering both IT-specific risks and their broader business impact.
 Accountability: Placing IT investments within the broader planning framework
helps assign responsibility for outcomes and ensures that decisions are made
in the best interest of the organization as a whole.

conceptual question :
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Certainly! Please feel free to ask your conceptual question, and I'll do my best to provide a clear and
informative answer.

conceptual questions according to information technology investment technology : 1)How does

“sequential decisions” add complexity to a particular decision situation? 2)What are the four types of
IT investment problems? Explain each. 3)how would you describe three IT investment decision-
making methodologies? 4)What are the four components that make up an MIS? Are decisions on IT-
supported in all four areas? 5)What are the three stages of MIS hierarchical planning? How are they
further broken down into nine different steps? Where does IT investment decision-making fit into the
hierarchical plan?
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1. How does "sequential decisions" add complexity to a particular decision situation?
  Sequential decisions refer to making a series of decisions in a predetermined order,
one after the other. This can add complexity to a decision situation because each
decision can be influenced by the preceding ones. If one decision doesn't align with
the overall strategy or if new information arises, it may require revisiting earlier
decisions, potentially leading to delays or increased costs. The interdependence of
sequential decisions can make it challenging to adapt to changing circumstances.
2. What are the four types of IT investment problems? Explain each.
 The four types of IT investment problems are: a. Strategic Problems: These involve
decisions related to long-term IT investments that align with the organization's
overall strategic goals. Strategic problems require evaluating how IT investments can
provide a competitive advantage or support long-term growth. b. Managerial
Problems: Managerial problems deal with how IT investments are managed within
the organization. This includes issues related to project management, resource
allocation, and risk assessment. c. Operational Problems: Operational problems focus
on the day-to-day IT activities, such as choosing the right software, hardware, or
network solutions to optimize current processes. d. Tactical Problems: Tactical
problems bridge the gap between strategic and operational concerns. They involve
medium-term planning and aim to align IT investments with specific business units or
departments.
3. How would you describe three IT investment decision-making methodologies?
 Three IT investment decision-making methodologies include: a. Return on Investment
(ROI): ROI calculates the financial return expected from an IT investment by
comparing the expected benefits to the costs. It's a quantitative method that helps
organizations prioritize projects based on their potential profitability. b. Cost-Benefit
Analysis (CBA): CBA involves evaluating the costs and benefits of IT investments,
including both financial and non-financial factors. It considers the overall impact on
the organization, not just ROI, to make well-rounded decisions. c. Balanced
Scorecard: The Balanced Scorecard methodology takes a holistic approach,
considering financial, customer, internal process, and learning and growth
perspectives. It ensures that IT investments align with the organization's strategic
objectives and considers various performance metrics.
4. What are the four components that make up an MIS? Are decisions on IT supported in all
four areas?
 The four components of a Management Information System (MIS) typically include: a.
Data Gathering: Collecting relevant data from various sources. b. Data Storage:
Storing data in databases or data warehouses. c. Data Processing: Analyzing and
processing data to generate meaningful information. d. Information Dissemination:
Distributing information to relevant stakeholders.
 Decisions related to IT can impact all four areas of an MIS. For example, IT decisions
can affect data gathering by determining which data sources to integrate, data
storage by selecting the appropriate databases, data processing through analytics
tools, and information dissemination through reporting and dashboards.
5. What are the three stages of MIS hierarchical planning? How are they further broken down
into nine different steps? Where does IT investment decision-making fit into the hierarchical
plan?
  The three stages of MIS hierarchical planning are: a. Strategic Planning b. Tactical
Planning c. Operational Planning
 These stages can be further broken down into nine steps as follows:
 Strategic Planning (Top Level):
1. Define the organization's mission and objectives.
2. Analyze the external environment (e.g., market trends).
3. Develop a strategic plan.
 Tactical Planning (Middle Level): 4. Translate strategic goals into specific
departmental objectives.
1. Identify the resources needed.
2. Develop a tactical plan.
 Operational Planning (Bottom Level): 7. Develop operational plans for daily
activities.
1. Implement and manage the plans.
2. Monitor and control operations.
 IT investment decision-making primarily fits into the strategic and tactical planning
stages, where decisions about which IT projects to pursue and how they align with
the organization's goals are made. It also plays a role in operational planning, where
the implementation and management of IT projects occur
Learning Objectives After completing this chapter, you should be able to: • Describe different types
of IT investment decisions manager face. • Briefly describe some of the methodologies that are used
in IT investment decision-making. • Explain why IT investment decision-making is important as a
subject to study. • Explain some of the limitations that should be considered when using IT
investment methodologies. • Explain the role of IT investment decision-making within organizational
planning.
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Certainly! The learning objectives you've listed pertain to IT investment decision-making. Let's break
down each objective:

1. Describe different types of IT investment decisions managers face: This objective implies
understanding the various types of investments in information technology that managers encounter.
This could include investments in hardware, software, cybersecurity, infrastructure, or digital
transformation initiatives. Differentiating between these types of investments and understanding
their implications is crucial.

2. Briefly describe some of the methodologies used in IT investment decision-making: This

objective involves introducing students to various methodologies like ROI (Return on Investment),
NPV (Net Present Value), TCO (Total Cost of Ownership), and risk analysis. Describing these methods
helps students understand how to evaluate and compare different IT investment options.

3. Explain why IT investment decision-making is important as a subject to study: This objective

explores the significance of studying IT investment decision-making. It involves understanding how
these decisions impact an organization’s efficiency, competitiveness, innovation, and overall strategic
goals. It's important to emphasize how smart IT investments can lead to substantial business
benefits.

4. Explain some of the limitations that should be considered when using IT investment
methodologies: This objective highlights the constraints and challenges associated with IT
investment methodologies. It involves discussing factors such as uncertainties in technology,
changing market conditions, implementation risks, and the limitations of financial models.
Understanding these limitations is crucial for making informed decisions.

5. Explain the role of IT investment decision-making within organizational planning: This

objective focuses on the integration of IT investment decisions into the broader organizational
planning process. It includes understanding how IT investments align with business objectives,
support strategic goals, and contribute to long-term organizational growth. Discussing the role of IT
investments in organizational planning provides context for students to comprehend the broader
business implications.

By achieving these objectives, learners can develop a comprehensive understanding of IT investment

decision-making, enabling them to make informed choices that align with organizational goals and
strategies.