This is a new edition of one of the leading and authoritative books on the subject of IT costs and benefits. Since it was first published in the early 1990s this book has established itself as the most comprehensive and complete approach to understanding the economics of how information is used to boost the efficiency or effectiveness of companies. The ideas in the book are used extensively in business, and the book is widely adopted and recommended at leading business schools throughout the world.

This book looks at the business reasons for IT investment and explains how to demonstrate that the large sums of money required for IT investment are used to improve business processes and practices. This is achieved by applying a 5 factor model which includes: Understanding how the business will change as a result of the investment, Who in the organisation will make the improvements happen, Checking that the proposed investment is in alignment with the corporate strategy, Making sure that the technology proposed is appropriate and Understanding the risk involved. This book shows how to use this approach to prioritise projects.

The effective use of information technology is seen by many as the key differentiator between the successful enterprise and the mediocre although it has always been difficult to demonstrate the actual value of IT investment. This situation is no longer acceptable. Today, as management faces increasing pressure to cut costs and increase margins, even the most essential IT investment comes under scrutiny.