IT-Enabled Investment Value Measurement

Identifying Drivers for IT-Enabled Investments

Question

To measure the value of IT-enabled investments, an enterprise needs to identify its drivers as defined by its:

Answers

Explanations

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A. B. C. D.

C.

To measure the value of IT-enabled investments, an enterprise needs to identify its drivers, which are typically defined by its business strategy.

Business strategy refers to a set of long-term goals and objectives that a company defines to achieve success. These goals are typically aligned with the company's mission, vision, and values. Business strategy also encompasses the actions a company takes to achieve its goals, such as market positioning, product development, and resource allocation.

IT-enabled investments are those investments that are made to improve or enhance the company's IT infrastructure, systems, or processes. These investments can help a company achieve its business strategy and goals by improving efficiency, reducing costs, and increasing revenue.

To measure the value of IT-enabled investments, a company needs to understand the drivers behind these investments. These drivers refer to the specific goals and objectives that the company hopes to achieve through its IT investments.

For example, a company may invest in a new customer relationship management (CRM) system to improve customer satisfaction and increase sales. The drivers behind this investment would be to improve customer satisfaction and increase sales, which are aligned with the company's business strategy.

Identifying the drivers behind IT-enabled investments is important because it allows a company to measure the value of these investments more effectively. By understanding the specific goals and objectives that a company hopes to achieve through its IT investments, it can develop metrics and key performance indicators (KPIs) to measure the success of these investments.

In summary, to measure the value of IT-enabled investments, an enterprise needs to identify its drivers, which are typically defined by its business strategy. By understanding the drivers behind its investments, a company can measure the success of these investments more effectively and ensure that they are aligned with its long-term goals and objectives.