The Electronic Journal of Information Systems Evaluation provides critical perspectives on topics relevant to Information Systems Evaluation, with an emphasis on the organisational and management implications
For general enquiries email
Click here to see other Scholarly Electronic Journals published by API
For a range of research text books on this and complimentary topics visit the Academic Bookshop

Journal Article

Economic Desirability and Traceability of Complex Products  pp201-212

Mordechai Ben-Menachem, Ilanit Gavious

© Nov 2008 Volume 11 Issue 3, Editor: Dan Remenyi, pp109 - 212

Look inside Download PDF (free)


The real values and benefits of Information Technologies are difficult to quantify and frequently even to identify accurately. Existing financial models such as Net Present Value have proven insufficient for complex products, for long‑ term corporate goals. IS projects and software‑rich products are decided upon while ignoring critical financial aspects, as the distance between the corporate product vision and the reality that engineers see may be very large. This paper maps between economics vis‑à‑vis IS‑based product management via an inter‑disciplinary approach, looking at the needs and exigencies of corporate management, IS project, products and software engineering. The basis for the article is a discussion of the difficulties in evaluation of the economic desirability of complex, software‑ rich products. It presents a dynamic corporate‑level model for economic profit evaluation designed to deal with the unique characteristics of such products, over many variants and versions, and the entire lifecycle. Given the extreme uncertainty of costs, benefits, risks and timeframes projections, the model facilitates real time reporting via an information system designed for management of Products, Portfolios and Projects. Whereas existing project management techniques such as Earned Value Management provide a general basis for managing project level activity, our model provides a longer‑term view to assess economic affects of corporate strategies over time. This is provided by a dynamic, Management Information System based aggregation of all product information, over an entire product lifecycle, with the objective to provide a knowledge base for corporate dynamic decision‑making. Concomitantly, the model fulfils Sarbanes‑Oxley Act of 2002 requirements for management assertion traceability of valid and accurate measures. These aspects co‑joined, from Sarbanes‑Oxley, back through multiple products, over myriad versions, and through automated requirements, design and testing tools, all combine to form an auditable management feedback loop that can be leveraged at multiple corporate management levels. The paper represents a significant step towards quality product decision‑making via a model that is meaningful, while also useful as it is leveraged through an automated tool set.


Keywords: economic profit, information systems, IS management, IS evaluation, product management, project management, traceability


Share |

Journal Issue

Volume 11 Issue 3 / Nov 2008  pp109‑212

Editor: Dan Remenyi

View Contents Download PDF (free)

Keywords: B2C e-commerce, boundary objects, business-to-business integration, Caribbean, data functionality , data ownership, DeLone and McLean, developing countries, e-commerce success, economic profit, electronic surveys, evaluation methodology, Gulf Cooperative Council (GCC), information and communication technologies (ICT), inter-organizational data integration problems, IS evaluation, IS management, IS outsourcing , IS Project Management, IS success, Middle East, multi-method, Oman, product management, project management, Project Objectives Measurement Model (POMM), service levels, SERVQUAL, Small and Medium Sized Enterprises, SME, success criteria, systems science, systems thinking, traceability, WWW, service-quality


Share |