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Companies are increasingly reporting their inability to justify their investment in IT/IS because of the nature of costs and benefits associated with its adoption. The reason for this is that many capital budgeting procedures rely on financially orientated appraisal techniques as an integral part of the decision‐making process. The use of traditional appraisal techniques is considered to be no longer appropriate in appraising investments in IT/IS because of the nature of non‐financial and intangible benefits, together with the complexity of direct and indirect cost factors. The authors of this paper identify the range of cost implications associated with the adoption of IT/IS, with a particular focus on the manufacturing industry. These costs are then developed into a taxonomy of direct and indirect factors, which clearly need consideration during the investment decision‐making process.

Due to the increasing level of organisational investment in Information Technology (IT) and Information Systems (IS), significant amounts of capital need justifying. However, many companies are reporting their inability to justify their investment in IT/IS because of the nature of cost and benefits associated with its implementation. The reason for this is that many organisational budgeting processes rely on financially oriented appraisal techniques as an integral part of the decision-making process. These accountancy frameworks are often used to assess the ‘bottom-line’ financial impact of an investment by setting tangible project costs against those quantifiable benefits and savings predicted to be achievable. However, traditional appraisal techniques are considered to be no longer appropriate in justifying investments in IT/IS because of the nature of intangible benefits, together with the complexity of direct and indirect cost implications. Hence, the predictive value of using many traditional investment appraisal techniques is increasingly being questioned. The authors of this paper have identified and then classified a variety of appraisal techniques that are used during the justification of capital investments in IT/IS. The taxonomy developed provides a critique of characteristics for both traditional and non-traditional appraisal techniques. The authors then identify a range of cost implications associated with the adoption of IT/IS, with particular focus on manufacturing applications. These cost implications are then developed into a taxonomy of direct and indirect costs, which clearly need consideration during the investment decision-making process.

The authors discuss issues relating to the feasibility of a Web-based database for facilitating communications between university researchers and industry. They have constructed an experimental Web-based Technology Bank that provides examples of university research which might be of interest to manufacturing companies. They are using this database as a focus of discussion on the usefulness of electronic communications for technology dissemination. The portfolio of research products, and the Web site on which it is housed, are currently being presented in a series of workshops for senior executives in small and medium sized manufacturing companies. Views are also being gathered from technology intermediaries. Analysis of the data so far has highlighted potential problems in disseminating information on the Internet and has also enabled the authors to identify and understand users' profiles.

In this paper we adopt an intellectual capital framework to support research into the current state of the UK engineering industry. We describe the development of the framework and present a snapshot of the industry based on the views of leading industry practitioners and observers.

Summary form only given as follows. As organizational investments in information technology (IT) and information systems (IS) continue to grow, significant amounts of capital need justifying. However, many companies are increasingly reporting their inability to justify their investment in IT/IS because of the nature of costs and benefits associated with its implementation. The reason for this is because many organizational budgeting processes rely on financially orientated appraisal techniques as an integral part of the decision making process. These accountancy frameworks are often used to assess the 'bottomline' financial impact of an investment, by setting tangible project costs against those quantifiable benefits and savings predicted to be achievable. However, traditional appraisal techniques are considered to be no longer appropriate in justifying investments in IT/IS because of the nature of intangible benefits, together with the complexity of direct and indirect cost implications. Hence, the predictive value in using many traditional investment appraisal techniques is increasingly being questioned. The authors in this paper identify the full range of cost implications associated with the adoption of IT/IS, with a particular focus on manufacturing resource planning (MRPII). These cost implications are then developed into a taxonomy of direct and indirect costs that clearly need consideration during the justification process.

A case study strategy as part of an Information Systems (IS) research methodology embodies a unique style and is one that can employ a variety of research methods. This scientific approach to research appears to be increasing in popularity in the area of IS, and is providing a legitimate alternative to the more traditional lines of enquiry. The authors of this paper identify the underlying purpose of a case study strategy and describe its research objectives. These typically include a strategy for (i) discovery and theory building; (ii) theory testing; and (iii) discovery, theory building and theory testing. The authors then debate the merits of a single versus multiple-case study design. This is followed by a discussion of the positivist and interpretivist epistemological approaches that a case study research strategy can take, drawing case study examples from the published IS literature, thus facilitating in the establishment of the readers epistemological stance. The authors then review the characteristics inherent in quantitative and qualitative research methods, which are summarised in a taxonomy. Finally, the authors conclude by stressing the suitability of a case study strategy when part of an IS research methodology.

The adoption of modern manufacturing technology often requires a large amount of investment, which ultimately needs justification. However, many organisations are increasingly reluctant to pursue capital investments in new technology because it is widely considered that traditional approaches to project justification often overemphasise short-term tangible benefits, and undervalue long-term strategic focuses. The result all too often is indecision. The authors of this paper present a taxonomy of project appraisal techniques, which are used to evaluate manufacturing Information Technology (IT) projects. As the use of IT extends further into the manufacturing domain, there is a growing need to identify a suitable mechanism, which addresses the misalignment between tangible and intangible project implications. As a result, the authors present a conceptual framework, which integrates strategic, tactical, operational and financial dimensions into the investment decision making process.

Although manufacturing information and data systems (MIDS) form an integral part of a manufacturing organization's infrastructure, the growth of corporate IT expenditure has left many companies questioning the value of their MIDS deployment. The use of traditional appraisal techniques to justify investments in MIDS typically relies on measures based on direct cost savings and incremental future cash flows. These techniques are considered no longer appropriate because of the largely intangible cost and benefit dimensions of many IT projects. This paper presents the results of a research study based on interviews in eighteen manufacturing companies, which investigated the methods used to assess the value and cost of MIDS investments. After showing that the concepts used to justify value vary significantly between respondents, the research indicates that intuition plays an important role in value prediction and assessment. A comparison between small and large companies indicates that the systems implementations are perceived in a better light in smaller companies. The results obtained are then compared with recent research.