[Investment appraisal for internet projects]

by

Table of Contents

ABSTRACT1

TABLE OF CONTENTS2

CHAPTER 1: INTRODUCTION4

Background5

Problem Statement6

Purpose of Study7

Objectives of Study7

Scope of Research7

Rationale of Study8

Structure of Dissertation9

CHAPTER 2: LITERATURE REVIEW10

Process of technological innovation13

Process of advanced internet project technology14

Business strategy process15

Financial appraisal and longer-term regulatory responses19

Process of capital investment analysis22

Project selection phase24

A brief review of investment decision making24

IT investment justification27

Cost and benefits implications of IT31

The importance of extracting IT benefits33

Multiple criteria decision making34

Multi-criteria utility theory (MCUT)35

Multi-criteria additive utility function36

Best practice in benefits management37

A relevant issue: focusing on quality40

CHAPTER 3: METHODOLOGY42

Research Method42

Project selection criteria (PSC)44

Assessment of relative weights46

Scores of criteria46

Determination of utility functions47

Project selection49

CHAPTER 4: DATA ANALYSIS AND DISCUSSION51

Project value51

Project benefits51

Project costs51

Risk factor52

Financial appraisal53

An FCM of justification process54

Modelling evaluation of IT/IS projects56

Orthodox investment approach57

A pre-emptive justification model for optimisation57

Optimisation via a GA59

CHAPTER 5: CONCLUSION60

Summary60

Implications61

Conclusion63

Future work64

REFERENCES65

APPENDIX A: TABLES71

Investment Appraisal for Internet Projects

Chapter 1: Introduction

 

In latest years, evaluation of intangible benefits has become an explicit valuation technique of investment. By compare, evaluations of three factors that may impede realization of benefits have not become an explicit requirement. These three factors are handicaps, reliability and utilization. Importance of these factors can occasionally be recognised before investment appraisal when exploratory procedures for example contingency designs are used. However, clues offered in this paper proposes that these three factors are often overlooked. Moreover, clues offered here proposes that investment performance often bears as  result. Consequently, it is contended that assessments of investment should be balanced by assessments of impairment, reliability and utilization an explicit requirement. This contention is sustained by accounts of knowledge of activity research. These knowledge show that assessments of investment can be balanced by assessments of impairment, reliability and utilization an explicit requirement.

By compare, impairment assessments, reliability and utilization have not become an explicit obligation of assessment techniques. However, handicaps, reliability matters and use may impede realization of benefits, substantial or intangible. For demonstration, use may block strategic plans that are proposed to allow  new technology. On other hand, if an investment in new technology is not utilised, it is not probable to produce  return on investment. Despite its significance, evaluation of these three critical performance factors is not an explicit obligation of financial evaluation techniques. In detail, disbenefit period was not discovered to be present in any of techniques of assessment.

 

Background

Importance of these three critical performance factors can occasionally be recognised before submission of assessment techniques as exploratory procedures for example contingency designing (Swanson et al., 2002) are used. However, clues offered in this paper proposes that matters dis-benefit, reliability and utilization are often overlooked. Moreover, clues offered here proposes that investment performance often bears as  result. Consequently, it is contended that assessments of investment should be balanced by assessments of impairment, reliability and utilization an explicit requirement. This contention is sustained by accounts of knowledge of activity research. These knowledge show that assessments of investment can be balanced by assessments of impairment, reliability and utilization an explicit requirement.

Many of mechanical choices accessible to support financial evaluation of promise investments are in new ...