Evaluation of feasibility of it projects by publicly quoted companies in Kenya

Abstract

As more capital is being invested on IT projects in the coming years, company decision makers must learn to moderate their zeal in adopting IT solutions. Despite claims to success attributed to IT, there are senior management people who are dissatisfied with what has been achieved with the huge IT investments. Perhaps these managers expect too much from IT or do not know what they expect. This points to the need to have a careful evaluation of feasibility of IT projects. Unless it is made clear as to what can and cannot be achieved with IT, dissatisfaction will continue. In IT project assessment as in life itself, to be forewarned is to be forearmed. Against this background the research study sought to determine the evaluation methods used by publicly quoted companies in the Nairobi Stock Exchange and the criteria for their choice.

Forty-two companies, out of a total of 54, responded. to the research survey. Data for the survey was collected using a self-administered ques­tionnaire. Of the 42 companies that responded to the survey, thirty (30) evaluate IT projects at feasibility stage. The IT Department, the Executive Board, the Finance Department, and the User Department are the main players in the evaluation process. The involvement of top management in­ dicates the importance of IT investments in the companies. This is also corroborated by the fact that 76.2% of the companies have separate IT de