Analysis of IT Related Financial Issues in Seven Companies of Sweden : Reasons Behind the Current Condition

Abstract: One of the best ways to get expected results from information technology (IT) in a business organization is to have a close look at the financial issues related to it. Financial issues such as IT investment, IT costs, IT resources should be dealt with special care if any organization wants to get best result from its IT systems. The purpose of this research is to investigate the condition of IT financial issues such as IT investment, IT costs, IT resources, IT business value etc. in the selected seven organizations of Sweden and to have an understanding behind the condition. First of all, a survey has been conducted with nine IT managers from these seven organizations to get an overview of the condition of dealing with various IT financial issues. Then follow-up interviews have been conducted with four of those IT managers that took part in the survey to find out the reason behind the condition dealing with those IT financial issues. The results of the study show that most the seven companies do not have proper capital budgeting technique, benefit identification plan for IT investment. Most of them do not calculate all the IT related costs. Most of them have lack of knowledge about the business value of IT. Their knowledge of impact of IT resources is not clear. The study further shows why those seven companies are having that kind of condition regarding the IT related financial issues.