The Importance Of Quantifying Financial Returns On Information System (IS) Investment For Organizations: An Analysis

Many organizations and businesses have found it difficult to invest in new projects in recent years, Aside from the fact that it is difficult to measure information systems costs and investment returns, how to determine costs and returns on investment before starting a business is an important practice, and there are numerous issues that have caused complications and cost increases for some businesses. The importance of information system investments was assessed using a descriptive analysis methodology. In order for the company to make an informed decision on the return on investment, it must first engage in lengthy debate and analysis to gain a thorough grasp of the business processes and the environment in which it is embedded. The paper also compares with relevant examples the several approaches and methodologies for quantifying the financial Return on Investment (ROI) in order to ease decision making by most investors while investing in Information System in organizations.