In particular, the module highlights the medium term financial consequences of IS capital expenditure decisions. Frequently IS costs are higher than expected Often the benefits provided by IS are lower than expected SMIS is concerned with both of these issues. In this module the focus is on IS costs and on IS capital expenditure decisions in particular. This module indicates how current IS capital expenditure mortgages the future. The reason for this is that the IS capital expenditure programme has a long term effect on the value an organisation derives from IS expenditures.
Some projects generate significant benefits.
Others are less effective. The challenge is to focus IS capital expenditures on high value projects. IS cost dynamics are considered from a general management perspective. The module does not discuss the detailed strategies available to IS managers to manage IS costs as that topic is outside the scope of this course. Whilst the management of IS costs is a critical issue, it is important to bear in mind that obtaining value from information systems is the key issue.