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Making rational decisions about IT projects using Enterprise Architecture : a case study conducted at ASML Netherlands N.V.

Laarhuis, N.M. (2016) Making rational decisions about IT projects using Enterprise Architecture : a case study conducted at ASML Netherlands N.V.

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Abstract:IT has transformed from supporting single activities to providing landscapes in which multiple information systems support multiple activities and processes. A result is that IT has become increasingly interwoven with organizations. Many organizations still see IT as a cost center driven on efficiency instead of using the capabilities it offers to position themselves as business enablers. One of the critical topics linked to this is IT valuation; how exactly can organizations create business value from their IT investments? Most organizations struggle with the complexity associated with IT investment decisions. Choices based on as many alternatives and criteria as possible would probably lead to the most convenient outcome. Such a pure rational approach is hardly possible in practice given that alternatives and criteria are not always available or clear to the decision-maker. In addition, people do not have the capacity to process the vast amount of information related to IT investments. A consequence is that decision-makers rely on less rational ways of decision-making and do not base their choices on complete information. This is mostly the moment when political processes pre-dominate the decision-making process.The literature research revealed that in order to create IT-based value from an IT investment, enterprise architecture is an important part of the solution. For the most part, IT investments do not create business value directly; they instead do so indirectly by enhancing processes. Enterprise architecture, and more specifically the modeling language of ArchiMate, offers organizations an opportunity to create a holistic overview of their organization and make the relations between the organizational goals, business processes and the supporting IT transparent. While political processes are considered to have bad influences on organizational performance, it is necessary to achieve a better balance between rationality and political processes. Increasing rationality in the decision-making process can establish a better balance, but political processes can never be fully erased. As stated before, people are not purely rational given that they are limited by their reasoning capacity. This limitation does not preclude the enhancement of rationality by so-called “rationality carriers.” It is known that the complexity surrounding IT investments makes it eventually difficult to make well-informed and founded investment decisions.
Item Type:Essay (Master)
ASML Netherlands N.V.
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:54 computer science, 85 business administration, organizational science
Programme:Business Administration MSc (60644)
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