The question is proposed to measure the information technology value, especially related to its applied capital and cost. I need answers that solve methodologies to do so, thank you a lot.
Information technology value is measured in term of cost savings as a result of the increase in productivity and efficiency and increase in cash flows as a result of an increase in revenues. You can use capital budgeting techniques that will allow capital expenditure and operational expenditure in determining the value of technology to the company. Thanks.
You’re talking of value based on inputs. You must look at outputs, and you must also consider alternative inputs (other than IT). In each case, look at the margins - effect of incremental change. So, construct your investigation.