Toward IT Value Mapping – An Approach toValue-Based IT Management

Recent research has shown that companies face considerable difficulties in implementing a value-based management of theirIT portfolios. This paper therefore presents an approach for measuring and managing the business value of IT investments.To ensure practicability, our approach is derived from a set of practice-based requirements extending previous empiricalwork. In our conceptual model we distinguish between capital budgeting and ongoing value management. For capitalbudgeting we propose to assess IT investments according to their expected business value by using net present value analysisand a scoring model. For ongoing value management we recommend to keep track of a set of project specific keyperformance indicators to ensure that the desired benefits are realized.[...]