Applying concepts of fuzzy cognitive mapping to model: The IT/IS investment evaluation process

The justification process is a major concern for those organisations considering the development of an information technology (IT)/information systems (IS) infrastructure, which in turn is putting the competitive advantage of many companies at risk. The reason for this centers around management's inability to evaluate the holistic implication of adopting new technology, both in terms of the benefit and cost portfolios. In attempting to investigate this, the authors of this paper identify a number of well-known project appraisal techniques used during the IT/IS investment justification process. In establishing a number of limitations inherent in traditional appraisal techniques, the concept of multivalent, or fuzzy logic, is used to demonstrate how inter-relationships can be modeled between key dimensions identified in a proposed conceptual model for investment evaluation. The authors highlight this using fuzzy cognitive mapping (FCM) as a technique to model each IT/IS evaluation factor (integrating strategic, tactical, operational and investment considerations). The use of an FCM is then shown to be as a complementary tool that can serve to highlight interdependencies between contributory justification factors.