Literature Review for Prioritizing IT investments Essay

Literature Review for Prioritizing IT investments - Essay Example According to the article Optimize Cooperate Investment in Information Technology by OracleInsight, IT investments take the lead in many companies; many companies have invested in IT making the total IT investments worldwide rise rapidly (5). This has prompted research on the benefits that come with IT investments. First, IT has improved the organization’s communication systems, which adds to the long term benefits in a business. IT also promotes the exchange of ideas within and outside the business, as well as ease complexity of communication system making it convenient and confidential. Similarly, Due notes that communication to the customers and other business stakeholders become easy with the use of IT (74). Secondly, majority of the managers prioritizing on the IT investment have experiences that facilitate their application of IT equipment and a lot of information concerning the applicability of the software and other IT features are available worldwide. Many companies own computer programming models with well skilled computer and IT skills (Sykes and Clayton 2). Additionally, these IT investments proved that they have the ability to improve future results. Information stored in the computers is used as a reference in the future. Thirdly, IT investments create a competitive advantage. For instance, Kearns after conducting a case study on two companies notes that IT investments help companies achieve a competitive edge, but a success in prioritizing IT investments requires the involvement of management, and also depends on the organization structure (10). Lack of information on the actual role played by IT makes it difficult to categorize the benefits as either tangible or intangible. This is caused by the fact that most organizations do not define or split their benefits in terms of outset. Additionally, IT projects cannot be categorized alone, therefore, making it difficult