INFORMATION SYSTEMS AND INFORMATION TECHNOLOGY INVESTMENT MANAGEMENT AS AN INSTRUMENT FOR CREATING ORGANIZATIONAL STRATEGIC VALUE

This article examines the management of Information Systems and Information
Technology (IS/IT) investments from a strategic value creation perspective based on the
framework developed by Ward and Peppard. Despite substantial organizational spending
on digital technologies, many IS/IT initiatives fail to generate proportional business value,
a phenomenon widely referred to as the IT productivity paradox. Using a conceptual
literature-based approach, this study synthesizes key theoretical insights from Ward and
Peppard and related IS/IT value creation literature to analyze how IS/IT investments
should be planned, evaluated, and managed. The analysis shows that IS/IT investments
should be treated as a strategic portfolio rather than as isolated technical projects. Value
does not emerge from technology deployment alone, but from the organizational changes
in processes, behaviors, and decision making that technology enables. The Ward and
Peppard model highlights the central role of benefits management, including benefits
ownership and the use of the Benefits Dependency Network, to ensure that anticipated
business benefits are explicitly defined, managed, and realized. The findings suggest that
organizations must shift from a technology-driven to a value-driven approach in
managing IS/IT investments. Senior managers and business units need to take
responsibility for realizing benefits, while IS/IT functions should act as enablers of
strategic change. This conceptual framework provides both theoretical clarity and
practical guidance for improving the effectiveness of IS/IT investment decisions and
enhancing organizational performance.