INFORMATION SYSTEMS AND INFORMATION TECHNOLOGY INVESTMENT MANAGEMENT AS AN INSTRUMENT FOR CREATING ORGANIZATIONAL STRATEGIC VALUE

This article examines the management of Information Systems and InformationTechnology (IS/IT) investments from a strategic value creation perspective based on theframework developed by Ward and Peppard. Despite substantial organizational spendingon digital technologies, many IS/IT initiatives fail to generate proportional business value,a phenomenon widely referred to as the IT productivity paradox. Using a conceptualliterature-based approach, this study synthesizes key theoretical insights from Ward andPeppard and related IS/IT value creation literature to analyze how IS/IT investmentsshould be planned, evaluated, and managed. The analysis shows that IS/IT investmentsshould be treated as a strategic portfolio rather than as isolated technical projects. Valuedoes not emerge from technology deployment alone, but from the organizational changesin processes, behaviors, and decision making that technology enables. The Ward andPeppard model highlights the central role of benefits management, including benefitsownership and the use of the Benefits Dependency Network, to ensure that anticipatedbusiness benefits are explicitly defined, managed, and realized. The findings suggest thatorganizations must shift from a technology-driven to a value-driven approach inmanaging IS/IT investments. Senior managers and business units need to takeresponsibility for realizing benefits, while IS/IT functions should act as enablers ofstrategic change. This conceptual framework provides both theoretical clarity andpractical guidance for improving the effectiveness of IS/IT investment decisions andenhancing organizational performance.