Benefits and Value of Investments in Information Systems

Abstract

Organisations constantly have to address the problem of identifying tangible and intangible benefits that can be achieved in result of investments made in Information Systems/Information Technology (IS/IT). This paper has the objective of approaching the problem in the perspective and context of Enterprise Resource Planning (ERP) systems in the Hospitality Industry. It focuses on implementation project strategies, namely in the particular and relevant aspects of their return on investment as well as benefits expected and delivered. When an organisation is confronted with the question of knowing if a certain investment in IS/IT may obtain a considered positive financial revenue, and if that investment means valuable benefits for the business, the answer is often far from being conclusive. Projects are often implemented on-time, on-budget and are technically appropriate, nevertheless the expected benefits are not achieved. This paper seeks to answer these questions in the context of ERP systems, in particular in the sector of hospitality industry, through a case study developed in Portugal. The investigation was developed on a group of hotel units, held by a Portuguese company, for which ERP meant an opportunity to harmonize and improve business processes.