ABSTRACT
An information strategy directs Information Technology (IT) investment, and establishes policies and priorities against which investment can be assessed. A fundamental starting point is the need for alignment of business/organizational needs, what is done with IT, and plans for human resources, organizational structures and processes. Information economics provides an impressive array of concepts and techniques for assessing the business value of proposed IT investments. The purpose of the whole threefold methodology is, through an internal and external analysis of needs and opportunities; to relate the development of information systems (IS) applications to business/organizational need and strategy. This chapter presents a few valuable pointers and approaches that work in practice to facilitate IT investment decisions that add value to the organization. The right 'strategic climate' is a vital prerequisite for evaluating IT projects at their feasibility stage. The organizational investment climate has a key bearing on how investment is organized, and what priorities are assigned to different IT investment proposals.
