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IS evolution benefit assessment: Challenges with economic investment criteria

2007

Maintenance and system evolution activities have a significant role in the information system (IS) life cycle. It has been estimated that approximately 80% of the total IT expenses are allocated for maintenance activities [20]. According to Lehman’s first law, maintenance is necessary, because software needs to be continuously improved or it will get out of date and cannot respond to the requirements of its environment [19]. Despite the importance of IS evolution investments, there is a gap between the IT related costs and company profitability [27]. Brynjolfssen [10] described this as a productivity paradox: information technology utilization has increased since the 70’s but simultaneously…