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Return on Investment in Information Technology

The article Return on Investment in ICT ' by Saweda Liverpool provides in-depth overview of return on investment paying special attention to educational sphere . Information technology is playing nowadays instrumental role in economic and social activities , but the issues whether information technology offers benefits are still under discussion . In her article the author presents her findings on return on investments in information technology stressing that it plays important role in general economic stability . Further , the author applies her findings to educational sphere focusing mainly on institutions

of higher education

Liverpool defines return on investment as benefits of actions which are derived from calculating incremental gain . In financial sphere it means that before working on project , decision-makers are required to evaluate the investment potential of the project . The author says that it is rather difficult to analyze return on investment in information technology as it is of intangible nature . Nevertheless , many IT investments have the potential to provide gain to organization and it is believed that using real-options modelling provides a way to quantify these opportunities and may help justify projects in circumstances where vague claims of intangible benefits may not (Liverpool 2005

Return in investment in IT may offer certain benefits for educational sphere . For example , it is effective tool to enhance the learning process and to monitor educational and administration institutions Nevertheless , limitations are also present . For example , it is necessary to consider capital costs of network hardware and software , as well as installation costs such as classroom and laboratory renovation . However despite certain limitations , information technologies are effective way to increase productivity and professional development

References

Liverpool , Sewada (2005 . Return on Investment in ICT . Retrieved February 20 , 2008 , from HYPERLINK "http /www .widernet .org /projects /return 20on 20investments 20in 20iCT /i ndex .htm http /www .widernet .org /projects /return 20on 20investments 20in 20iCT /in dex .htm

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