Proposal for Valuation Method of IT Investment in Management

Abstract

　The majority of the corporate value has changed from Tangible to Intangible Assets in the 1990s. In other words, the source of corporate value has been shifting to Intangible Assets, typified by intellectual property. This means a new type of Corporate Management that improves the profitability through Intangible Assets. With the changing times, Management Assessment of IT Investment also has started a new correspondence. In research on IT Investment, it has changed the management so as to include the Non-Financial Measurement with the Conventional Financial Measurement. In addition, Valuation of IT project performance has measured by Output, Outcome and Impact.

　In this paper, I propose the Comprehensive Valuation Method of IT Investment to deal with conventional problems by 'Balance Sheet with Intangible Assets', 'Balanced Scorecard through the Valuation of Readiness' and 'Value-Chain with Profitability Analysis'.