IT Investment Evaluation Practice: Using A.N.T Analysis in Malaysian Local Authorities

This research is to understand how evaluation is being used in managing IT investment. IT investment evaluation is an area to investigate mainly in the rise of computerized information system usage that rapidly growing with the support of latest technology, customer’s demand and investment by the organization. In fact, it is not completely understood and valued by organization or government. In order to be competent, the evaluation should be assessed and justified. However, its implementation is hazy yet few organizations are aware of such evaluation implementation. Evaluation research is inadequate in public sectors and hardly reported especially in Malaysia. Actor Network Theory (ANT) is used to study the agents involved in IT evaluation practices and determine the influence of evaluation practices in local authority in Malaysia. In addition, this research will identify the impact of evaluation methodology employment towards the current
issues from the ANT perspectives. This qualitative study approach was conducted in local authorities, focusing on pre and post evaluation of information system invested. ANT offered heterogeneity in describing and understanding the interrelationship of socio-technical aspect in IT investment evaluation analysis for Malaysian local authority. The findings revealed that lack of formal IT investment evaluation, low awareness level on the importance of evaluation, less exposure on the evaluation methodology and
inappropriate appraisals of the proposed IT investment projects caused certain local authorities unable to deliver the benefits expected. With lack of formal IT evaluation, organization loses benefits and waste resources.