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A hedonic wage model‐based methodology for evaluating the benefits of IT investments in public‐sector organisations

Peter Cilek (Institute for Information Processing and Information Economics, University of Economics and BA, Vienna, Austria)
Wolfgang Janko (Institute for Information Processing and Information Economics, University of Economics and BA, Vienna, Austria)
Stefan Koch (Institute for Information Processing and Information Economics, University of Economics and BA, Vienna, Austria)
Andreas Mild (Institute for Information Processing and Information Economics, University of Economics and BA, Vienna, Austria)
Alfred Taudes (Institute for Information Processing and Information Economics, University of Economics and BA, Vienna, Austria)

Journal of Enterprise Information Management

ISSN: 1741-0398

Publication date: 1 August 2004

Abstract

The economic justification of investments in information technology (IT) is a basic issue for IT management in private and in public‐sector organisations. Usually, the expenses made for any investment are compared to the cost saved. While the costs for implementing a new system are uncertain, only a small percentage of the benefits accrues as cost savings given the type of IT systems used today and the particularities of the public‐sector. In this paper, we present a methodology for the monetary quantification of the benefits resulting from the introduction of a modern IT application and demonstrate its use on the basis of a case of prison administration.

Keywords

Citation

Cilek, P., Janko, W., Koch, S., Mild, A. and Taudes, A. (2004), "A hedonic wage model‐based methodology for evaluating the benefits of IT investments in public‐sector organisations", Journal of Enterprise Information Management, Vol. 17 No. 4, pp. 269-275. https://doi.org/10.1108/17410390410548670

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited