Abstract
The initial evaluation of AT projects, such as AMT and IT, is proving to be extremely difficult, as existing financial models, such as the NPV and the IRR, fail to capture many of the strategic benefits.1 The literature shows that some companies now tend to use a greater number of appraisal techniques than in the past, but there is no consensus on the actual combination.2 The literature also shows that individual appraisal models on their own are now inappropriate and a more hybrid approach is required, one that includes both economic and strategic dimensions of choice.3 As a result of the perceived failure of some of the traditional methods of capital investment appraisal, managers sometimes base their decisions on ‘acts of faith’ or, as some researchers report, use less sophisticated financial models to evaluate what must be regarded as sophisticated IT projects.4
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Notes
Mohanty, R. P., and Deshmukh, S. G., 1998, Advanced manufacturing technology selection: A strategic model for learning and evaluation. International Journal of Production Economics, 55 (3), 295–307;
Serafeimidis, V., and Smithson, S., 2000. Information systems evaluation in practice: A case study of organizational change. Journal of Information Technology, 15 (2), 93–105.
Ballantine, J., and Stray, S., 1998. Financial appraisal and the IS/IT investment decision making process. Journal of Information Technology, 13 (1), 3–14.
Small, M. H., and Chen, I. J., 1997, Economic and strategic justification of AMT: Inferences from industrial practices. International Journal of Production Economics, 49 (1), 65–75.
Graham, J. R., and Harvey, C. R., 2001. The theory and practice of corporate finance: Evidence from the field. Journal of Financial Economics, 60 (2–3), 187–243.
Bannister, F., and Remenyi, D., 2000. Acts of faith: Instinct, value and IT investment decisions. Journal of Information Technology, 15 (3), 231–241.
Serafeimidis, V., and Smithson, S., 2000, Information systems evaluation in practice: A case study of organizational change. Journal of Information Technology, 15 (2), 93–105.
Introna, L. D., 1997, Management, Information and Power: A Narrative of the Involved Manager. (Basingstoke: Macmillan).
Feldman, S. M., 2005, The problem of critique: Triangulating Habermas, Derrida, and Garamer within metamodernism. Contemporary Political Theory, 4 (3), 308.
Whitley, E. A., 1999. Understanding participation in entrepreneurial organizations: Some hermeneutic readings. Journal of Information Technology, 14 (2), 194.
Pondy, L. R., 1983. Union of rationality and intuition in management action, in Srivastva, S., and Associates (eds.), The Executive Mind. (San Francisco: Jossey-Bass), 169–191.
Heemstra, F. J., and Kusters, R. J., 2004. Defining ICT proposals. Journal of Enterprise Information Management, 17 (4), 266.
Bannister, F., and Remenyi, D., 2000. Acts of faith: Instinct, value and IT investment decisions. Journal of Information Technology, 15 (3), 235.
Lefley, F., and Sarkis, J., 2005. Applying the FAP model to the evaluation of strategic information technology projects. International Journal of Enterprise Information Systems, 1 (2), 68–87.
Janis, I. L., 1982, Groupthink. (Boston: Houghton Mifflin).
Tversky, A., and Kahneman, D., 2000, Judgement under uncertainty: Heuristics and biases, in Connolly, T., Arkes, H. R., and Hammond, K. R., (ed.), Second edition, Judgement and Decision Making. (Cambridge: Cambridge University Press), 35–52.
Habermas, J., 1990, Moral Consciousness and Communicative Action. Studies in Contemporary German Social Thought. (Cambridge, MA: MIT). 198.
Klecun, E., and Cornford, T., 2005, A critical approach to evaluation. European Journal of Information Systems, 14 (3), 233.
This chapter is taken from the following publication, Lefley, F., 2008, Research in applying the financial appraisal profile (FAP) model to an information communication technology project within a professional association. International Journal of Managing Projects in Business, 1 (2), 233–259.
Gregory, A., Rutterford, J., and Zaman, M., 1999, The Cost of Capital in the UK: A Comparison of the Perceptions of Industry and the City. (London: CIMA).
Rauch, W., 1979, The decision Delphi. Technology Forecasting and Social Change, 15 (3), 159–169.
Lefley, F., and Sarkis, J., 2005, Applying the FAP model to the evaluation of strategic information technology projects. International Journal of Enterprise Information Systems, 1 (2), 68–87.
Bromwich, M., and Bhimani, A., 1991, Strategic investment appraisal. Management Accounting, 69 (3), 45–48.
Hambrick, D. C, 1981, Strategic awareness within top management teams. Strategic Management Journal, 2 (3), 263–279.
Dixon, R., 1988, Investment Appraisal — A Guide for Managers. (London, Kogan: Page/CIMA).
Madu, C. N., Kuei, C-H., and Madu, A. N., 1991, Setting priorities for the IT industry in Taiwan — A Delphi study. Long Range Planning, 24 (5), 105–118.
Cross, R. L., and Brodt, S. E., 2001, How assumptions of consensus undermine decision making. Sloan Management Review, 42 (2), 86–94.
Habermas, J., 1990, Moral Consciousness and Communicative Action. Studies in Contemporary German Social Thought. (Cambridge, MA: MIT).
Simons, T, 1995, Top management team consensus, heterogeneity, and debate as contingent predictors of company performance: The complementarity of group structure and process. In: Academy of Management Best Paper Proceedings, Vancouver, WA, pp. 62–66.
Archard, D., 2004, Review of ‘from pluralist to patriotic politics, putting practice first, by C. Blattberg. 2000, Oxford: Oxford University Press. Contemporary Political Theory, 3 (2), 212–213.
See, for example, Scapens, R. W., Sale J. T., and Tikkas P. A., 1982, Financial Control of Divisional Capital Investment. (London: ICMA);
Pike, R. H., 1983, A review of recent trends in formal capital budgeting processes. Accounting and Business Research, 51 (Summer), 201–208;
McIntyre, A. D., and Coulthurst, N.J., 1986, Capital Budgeting Practices in Medium-Sized Businesses — A Survey. A Research Report. (London: Institute of Cost and Management Accountants).
Primrose, P., 1991, Investment in Manufacturing Technology. (London: Chapman and Hall).
Author information
Authors and Affiliations
Copyright information
© 2015 Frank Lefley
About this chapter
Cite this chapter
Lefley, F. (2015). Applying the FAP Model to an ICT Project within a Professional Association. In: The FAP Model and Its Application in the Appraisal of ICT Projects. Palgrave Macmillan, London. https://doi.org/10.1057/9781137443526_11
Download citation
DOI: https://doi.org/10.1057/9781137443526_11
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-68454-0
Online ISBN: 978-1-137-44352-6
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)