Extended economic models for information systems balance theory

Even though we are in the information age, we do not have quantitative, objective tools to evaluate organisational information systems. This paper contributes a fundamental theory: information systems balance theory for this purpose. We design and develop a theoretic framework based on an economic model. We use this robust economic model to explain the value chain of designated information systems. Through finding the information systems balance point, we identify the comfort zone by calculating the average ratio of the notation value (V) of designated information systems and its organisational revenue for a certain period of time.