Top PDF The Dynamic Assessment of Information Technology Investment

Received May 2006; revised October 2006 Abstract. Evaluating the effectiveness of Information Technology (IT) investment has always been an elusive but important goal of IS researchers. The purpose of this paper is to present new dynamic approaches in the IT benefits evaluation. We use essential financial indicators to measure the impact of sample entities which performed IT in- vestment before December 31, 2004 in China and Taiwan. From the field study we find that both in China and Taiwan, the IT investment make a negative impact. However, from the Taiwan experience, most entITrises will meet the temporary decline situation after implementing the IT investment, but in the long-term, about 4 years, it will make a significant financial progress. While in China after IT investment, it always keeps a negatively related performance.

Information security in enterprises should be considered to be a strategic variable more than merely defensive maneuvers used to help them achieve operational optimization. This study establishes the threat versus investment model of a profit- maximizing monopolist in which the successful entry ratio approximates the intangible benefit of IS investment into measurable sales profit. The optimal IS investment strategy for a profit-maximizing monopoly that sells products online and faces an attack from cyber criminals is found to strictly increase with market potential and degree of threat, but the increment of the optimal investment strictly decreases with changes in market potential and degree of threat. The benefit-cost ratio of the optimal IS investment reaches its highest point when the degree of threat is within the intermediate range. Further, when the discount rate between time periods is low or zero, the optimal IS investment in the dynamic setup monotonically decreases with the awareness diffusion effect over time until the end of the time period. Finally, in a dynamic process in which the IS improvement increases its service quality and in which a good reputation is diffused by word of mouth, the optimal upgrade time for the monopolist’s investment in IS occurs whenever the gross profits of the product in two generations are the same.

investors that China would protect foreigners and their assets. In his televised speech (Chinese first high-level official reaction) on May 9, Chinese Vice President Hu Jintao said, “The Chinese government firmly supports and protects all the protests that tally with the law…. [However,] we must guard against any overreactions, watch out for people who may take advantage of the opportunity to disrupt the normal social order, and take firm actions to safeguard social stability…. To fully demonstrate the fine, civilized traditions of the Chinese nation, we will…protect foreign diplomatic establishments and their personnel in China, foreign nationals in China, and foreign personnel who are in China for economic, trade, educational and cultural activities.” 11 Within three or four days, Chinese officials secretly instructed campuses to discourage students from staging further protests. In May 2000, Beijing, again, issued a ban on protests to mark the anniversary of the Belgrade bombing. 12

System Dynamics is recognised as an approach to studying the behaviour of complex systems: it aims to demonstrate how policies, decisions, structures and delays are interrelated and influence growth and stability. The interrelationships generate a structure, which in turn produces behaviour (indeed, there is an implied sequence of time, with behaviour being preceded by structure). Therefore, the purpose of applying SD is to facilitate understanding of the relationship between the behaviour of a system over time and its underlying structure and strategies/policies/decision rules. The model aids conceptualisation of the causes of the existing behaviour and the testing of new policy designs in an effort to improve behaviour. Furthermore, based on the model, we will go on to study policy design by changing the parameter values, or the structural and aggregation level of the model obtained from the in-depth interviews or questionnaire survey. By using computer simulation, the interactions and driving forces within sectors can be clearly observed. The rapid increase of the R&D budget, nurturing of S&T researchers and adjustment of product and process innovation give rise to policy testing.

A dynamic relationship between savings and investment: The tales of China and the ASEAN-5 Mei-Se, Chien 1 , Chang Lee Shu-Jung 2 *, Chien-Chiang Lee 3 , Hui-Ting Hu 4 1 Professor, Department of Finance and Institute of Finance and Information, National Kaohsiung University of Applied Sciences, Taiwan

Abstract Knowledge transfer is one of the most important issues in the knowledge sharing context. In fact, information technology’s (IT) supporting role has already been addressed in knowledge transfer processes. Based on this process proposed by Garavelli et al. (2002), this paper conducted an assessment using the Analytic Hierarchy Process (AHP) technique. This was carried out in order to disclose the support suitability of IT types for knowledge transfer. The assessment hierarchy has three levels, which are the goal, process, and support levels. According to the 21 domain specialists and scholars’ assessment analysis, the main results suggest that (1) for goal level support, both the knowledge provider’s and receiver’s cognitive characteristics in the main stages of the knowledge transfer process (e.g. thinking behavior, preferences) were of more importance, while (2) requirements of cognitive characteristics management, interactive communication environment, and the tools for consistency analysis of cognitive characteristics were of more importance for process level support. The discussion and implications are also addressed.

The payback time for this system will be roughly less than 5 years. In addition, company A may also reduce their investment for incoming quality check if the quality management system can be synchronized and aligned between vendors and company A. At least one basic inspection machine can be reduced, which results in a 10 million US dollars cost saving according to the comment stated by the experts. This contributes significantly to the cost reduction effect. The summary and comparison are listed in Table 8. Although the numbers listed above are based on an assumption and are not very precise due to confidential issues, the company can evaluate the real cost and benefits based on the proposed mechanism and evaluation procedures, which is the main purpose of this research.

Information Systems The Department completed the Workflow Management System Project in September 2006. The System automates the distribution of tasks relating to tax assessment objections, tax holdover claims and requests for waiving surcharge etc, and assists in the control and monitoring of the flow of work. It has enabled the Department to effectively track and monitor case progress to ensure that performance pledge targets are met and improve the overall service quality.

eTAX During the year, the Department continued to develop eTAX at the GovHK and rolled out a wide range of personalised online services to facilitate taxpayers to handle their tax affairs in a convenient manner. eTAX users are provided with a personal message box for receiving e-correspondence from the Department, including e-Returns, e-Assessment Notices, e-Receipts for tax payments, etc.

IT Environment The Department has built up a comprehensive and integrated IT infrastructure with different types of computer application systems and platforms. The Department’s network connects the computer system and workstations of staff on different floors. Assessment process is automated by the “Assess-First-Audit-Later”

Information Systems During the year, the Department continued to employ various Information Systems to enhance productivity and service quality. With the Assess-First-Audit-Later System in place, the Department automated the assessment work and achieved manpower saving and improved efficiency. Investigation works are also facilitated through the use of large database and advanced analysis tools. With extensive utilisation of the Document Management System and Workflow Management System, the management, control and monitoring of documents, files and workflows are enhanced, thus strengthening our efficiency and accountability, ensuring our overall service quality and improving our responsiveness to public requests.

With the “Assess-First-Audit-Later” (AFAL) system in place, the Department can automate most of the assessment processes and attain high efficiency in tax assessment. Tax audit and investigation works are facilitated by the use of data mining and advanced analysis tools. With extensive utilisation of the Document Management System and Workflow Management System, the management, control and monitoring of documents, files and workflows are enhanced. The Department’s efficiency and accountability are therefore further

Information Systems After years of efforts, the Department has developed comprehensive information systems. Both the quality and efficiency of services to the public are enhanced through the integration of these systems. With the “Assess- First-Audit-Later” system in place, the Department can automate most of the assessment processes. Tax audit and investigation works are facilitated by the use of data mining and advanced analysis tools. With extensive utilization of the Document Management System and Workflow Management System, the management, control and monitoring of documents, files and workflows are strengthened. Our staff can also have access to the Department’s Intranet and General Enquiry Knowledge Database for general and technical information to answer public enquiries.

IT Environment The Department has set up a comprehensive and integrated IT infrastructure, including different types of computer application systems and platforms. Assessment processes are automated by the “Assess-First-Audit-Later” system. Tax audit and investigation works are facilitated by the use of data mining and advanced analytical tools. With extensive utilization of the Document Management System and Workflow Management System, the management, control and monitoring of documents, files and workflows are strengthened. A wide range of information is stored in the Department’s Intranet and General Enquiry Knowledge Database for convenient access by our staff. It greatly facilitates their work.

IT Environment The Department has built up a comprehensive and integrated IT infrastructure with different types of computer application systems and platforms. The Department’s network connects the computer system and workstations of staff on different floors. Assessment process is automated by the “Assess-First-Audit-Later”

IT Environment The Department has a comprehensive and integrated IT infrastructure, including different types of computer application systems and platforms. The Department’s network connects the computer system and staff workstations on different floors. Assessment process is automated by the “Assess-First-Audit- Later” system. Tax audit and investigation work is facilitated by the use of data mining and advanced analytical tools. With extensive utilization of the Document Management System and Workflow Management System, the management, control and monitoring of documents, files and workflows are strengthened. Apart from adopting computerized workflow to enhance efficiency, a wide range of information is stored in the Department’s Intranet and General Enquiry Knowledge Database for convenient access by our staff at work. Moreover, e-mail and Internet facilities provide an efficient and environment-friendly communication platform for our staff.

IT Environment The Department has a comprehensive and integrated IT infrastructure, including different types of computer application systems and platforms. The Department’s network connects the computer system and staff workstations on different floors. Assessment process is automated by the “Assess-First-Audit-Later” system. Tax audit and investigation work is facilitated by the use of data mining and advanced analytical tools. With extensive utilization of the Document Management System and Workflow Management System, the management, control and monitoring of documents, files and workflows are strengthened. Apart from adopting computerised workflow to enhance efficiency, a wide range of information is stored in the Department’s Intranet and General Enquiry Knowledge Database for convenient access by our staff at work. Moreover, e-mail and Internet facilities provide an efficient and environment-friendly communication platform for our staff.

The Department has a comprehensive and integrated IT infrastructure, including different types of computer application systems and platforms. Assessment processes are automated by the “Assess- First-Audit-Later” system. Tax audit and investigation works are facilitated by the use of data mining and advanced analytical tools. With extensive utilization of the Document Management System and Workflow Management System, the management, control and monitoring of documents, files and workflows are strengthened. Meanwhile, the Department’s network connects the computer system and staff workstations on different floors. Apart from adopting computerized workflow to enhance efficiency, a wide range of information is stored in the Department’s Intranet and General Enquiry Knowledge Database for convenient access by our staff at work. Moreover, e-mail and Internet facilities provide an efficient and environment-friendly communication platform for our staff.

Basically, this conclusion is compatible with the conclusion of the UN study. 25 As for FDI of capital- and technology-intensive industries, Taiwan’s investment style is similar to the FDI experiences of developed countries. Much international literature has analyzed these experiences, and basically has concluded that outward FDI makes a positive contribution to the home countries. Japan is a good example of this phenomenon. For Taiwan, capital- and technology-intensive enterprises engaged in FDI are essentially large and medium enterprises. Their FDI is intended to expand production capacity, expand market base, increase competitiveness, and establish a global production network and labor division. These FDIs can be called “expansionary” or “aggressive” FDIs, and would essentially contribute to Taiwan’s economic development, especially industrial upgrading. 26

This section presents two algorithms that calculate the accumulative probability of realized threat for each resource and the optimal security investment for each filter in an information center respectively. To calculate the probability of threat for any resource in an information center, we propose an algorithmic approach that generates path trees that contain all possible simple paths from the resource to the attack. For a given resource, the algorithm finds simple paths from the resource back to the attack in a top-down manner, based on the system structure, and adds to the tree. The simple path here is defined as a path that does not contain repeated nodes and any other resources. The leaf node of a path must be the attack. The path from a filter to a non-attack leaf node will be pruned if the filter has a attack as its other child. The algorithm then performs a bottom-up level-wise calculation of accumulative probabilities of threat passing each filter on the same level of the tree. The probability at the root of the tree will be the accumulative probability of threat of the resource. To calculate the probability of threat passing through a filter, depending on the number of interfaces, the filter is decomposed into combination of the basic patterns. The accumulative probability is then calculated according to the combined basic pattern.