Original scientific paper
ESTIMATION OF OPTIMAL INVESTMENT IN TO INFORMATION TECHNOLOGY USING HYBRID MOMC MODEL
Melita Kozina
; Faculty of Organization and Informatics, University of Zagreb, Varaždin, Croatia
Tihomir Hunjak
; Faculty of Organization and Informatics, University of Zagreb, Varaždin, Croatia
Abstract
In order to assess and estimate optimal investing into information technology (IT), a study has been done on the benefits and risks of such investments in a business system environment. The goal of reaching this decision will be actualised by identifying the best IT application with respect to estimated investment benefits and risks. In order to solve this problem, we used the hybrid Multi-Objective, Multi-Criteria (MOMC) model. The hybrid MOMC model is one of more recent models for estimating the usefulness of Ir, combining whole-number linear goal programming and the Analytic Hierarchy Process (AH?) method. Estimating investments into IT is a complex issue, since quality (or immeasurable) uses and risk factors must be taken into consideration along side quantity (measurable) elements of IT usefulness. Quality and risk factors are difficult to estimate with certainty, as there are no standard measures made for such estimations. In such a case, the estimation demands a general agreement on the metrics of attaching valu es to quality factors. The hybrid MOMC model is a structural decision-making model allowing decision-makers to identify all quantity, quality and risk factors involved in the particular situation(s) of invest ing into IT All these factors are organized through a hierarchy structure and quantified through the AH? By using the AH? method, decision-maker may determine the levels of priority for all factors (criteria) according to self-estimations of their relative importance as pertaining to investments. The purpose of determining such priority levels and importance is to have the decision-maker preferences fully adjust to the set goal and relative values of investment benefits and risks. Results gained by the AHP methods shall be used as entry values for the model of goal programming and the selection process.
Keywords
benefits and risks of investing into IT; estimation of investing into IT; hybrid MOMC model
Hrčak ID:
78310
URI
Publication date:
15.12.2004.
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