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Social Science Computer Review
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Analyzing Information Technology Investments in State Government

William C. Rivenbark

University of North Carolina at Chapel Hill, rivenbark{at}iogmail.iog.unc.edu

Kevin M. Fitzgerald

University of North Carolina at Chapel Hill, kfitz{at}iogmail.iog.unc.edu

Shannon H. Schelin

University of North Carolina at Chapel Hill, schelin{at}iogmail.iog.unc.edu

State agencies often find themselves caught between the need for technological innovation and the reality of large-scale technology failures, increasing the importance of supporting an information technology (IT) investment with a systematic and repeatable approach of analysis. This research explores the application of business metrics in state government for selecting and evaluating IT initiatives. The purpose is to identify benchmark states for their creation and implementation of specific metrics to enhance the decision-making processes found within the core phases of business case analysis, expanding the research of Fletcher on strategic planning. The states of Arizona, Oregon, Tennessee, and Iowa were identified as benchmark states based on the criteria of quantitative measurement, guidelines for calculation, and developed for utility. The authors conclude that business metrics derived from economic returns are only one component in managing an IT portfolio given the specific differences between public and private organizations.

Key Words: public sector • state government • information technology • investments • decision making • business case analysis • business metrics • return on investment • balanced scorecard

Social Science Computer Review, Vol. 21, No. 4, 497-505 (2003)
DOI: 10.1177/0894439303256382
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