To Spend or Not to Spend: Infrastructure Challenges

Numerous studies have explored IT expenditure benefits and the options such expenditure creates. These options are seen as intangible assets created by investing in IT (Kholi et al, 2012). Benefits of IT Expenditure (BITE) are assessed by the perception of senior executives. Perceptions of BITE are subjective and are important as there is little objective measurement at the process level (Tallon and Kramer, 2007). If a consensus between executives can be established it improves the prospects for an accurate understanding of processes (Tallon, 2000). This research therefore develops a conceptual framework to facilitate consensus for executive perceptions that shape an understanding of benefits as well as expenditure under sense making (Weick et al, 2005, Tallon, 2014) and sense giving (Rouleau, 2005, Weick et al, 2005). The shaping of understanding of benefits (BITE) and expenditure (ITE) are needed for the ex ante contracting of a business case as well as the ex poste governance of IT infrastructure.