Selecting information systems projects: problems, solutions and challenges

Allocating scarce resources to information systems (IS) projects is a critical problem for most organizations. The IS project selection literature has focused on the selection of independent projects. Frequently, however, the costs and benefits of IS projects are affected by other projects under consideration. Neglecting these interdependencies can result in poor selection decisions. In addition, in estimating a project´s value, the emphasis has been on user-oriented benefits. Project benefits resulting from a project´s impact on future projects are not considered. Failure to consider these benefits can result in a selection bias against projects that have a greater long-run impact on the organization. Addressing these issues presents both theoretical and practical problems. How these problems can be addressed and the challenges they present are discussed