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Investments in information systems: A contribution towards sustainability

Author

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  • Michael Hertel

    (University of Augsburg)

  • Julia Wiesent

    (zeb/rolfes.schierenbeck.associates gmbh)

Abstract

Empirical research has determined that information systems (IS) can abate far more emissions than they produce. By using its transformative power, Green IS can build energy efficiency along the entire business value chain and thus contribute to sustainable development that goes well beyond that of Green Information Technology (Green IT). However, from a business perspective there is still prevailing uncertainty with regard to the economic viability and optimal extent of Green IS investments. In this paper, we conceptualize a decision model for an IS investment that increases a company’s energy efficiency. We analyze and compare the costs associated with the investment and the realized energy cost savings. Furthermore, we examine the influence of fluctuating energy prices on investment decisions. By integrating risk and return into one decision calculus, we determine an optimal degree of investment, which avoids over-investment while promoting energy efficiency, and therefore establishes the long-term coherence of economic and environmental sustainability. Finally, we demonstrate that reduced exposure to risky energy prices results in comparatively larger investments, thereby implying a higher optimal investment degree, assuming the involvement of risk-averse decision-makers.

Suggested Citation

  • Michael Hertel & Julia Wiesent, 2013. "Investments in information systems: A contribution towards sustainability," Information Systems Frontiers, Springer, vol. 15(5), pages 815-829, November.
    • Handle: RePEc:spr:infosf:v:15:y:2013:i:5:d:10.1007_s10796-013-9417-x
    DOI: 10.1007/s10796-013-9417-x
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    2. Roya Gholami & Alemayehu Molla & Suparna Goswami & Christopher Brewster, 2018. "Green information systems use in social enterprise: the case of a community-led eco-localization website in the West Midlands region of the UK," Information Systems Frontiers, Springer, vol. 20(6), pages 1345-1361, December.
    3. Solvi Hoen, Fredrik & Díez-Gutiérrez, María & Babri, Sahar & Hess, Stephane & Tørset, Trude, 2023. "Charging electric vehicles on long trips and the willingness to pay to reduce waiting for charging. Stated preference survey in Norway," Transportation Research Part A: Policy and Practice, Elsevier, vol. 175(C).
    4. Manoj Thomas & Daniela Costa & Tiago Oliveira, 2016. "Assessing the role of IT-enabled process virtualization on green IT adoption," Information Systems Frontiers, Springer, vol. 18(4), pages 693-710, August.
    5. Zhaojun Yang & Jun Sun & Yali Zhang & Ying Wang, 2018. "Peas and carrots just because they are green? Operational fit between green supply chain management and green information system," Information Systems Frontiers, Springer, vol. 20(3), pages 627-645, June.
    6. Emanuele Gabriel Margherita & Alessio Maria Braccini, 2023. "Industry 4.0 Technologies in Flexible Manufacturing for Sustainable Organizational Value: Reflections from a Multiple Case Study of Italian Manufacturers," Information Systems Frontiers, Springer, vol. 25(3), pages 995-1016, June.
    7. Yosra Miaoui & Noureddine Boudriga, 2019. "Enterprise security investment through time when facing different types of vulnerabilities," Information Systems Frontiers, Springer, vol. 21(2), pages 261-300, April.
    8. Berna Tektas Sivrikaya & Ferhan Cebi & Hasan Hüseyin Turan & Nihat Kasap & Dursun Delen, 0. "A fuzzy long-term investment planning model for a GenCo in a hybrid electricity market considering climate change impacts," Information Systems Frontiers, Springer, vol. 0, pages 1-17.
    9. Joseph Sarkis & Chulmo Koo & Richard T. Watson, 2013. "Green information systems & technologies – this generation and beyond: Introduction to the special issue," Information Systems Frontiers, Springer, vol. 15(5), pages 695-704, November.
    10. Alfred Benedikt Brendel & Friedrich Chasin & Milad Mirbabaie & Dennis M. Riehle & Christine Harnischmacher, 2022. "Review of Design-Oriented Green Information Systems Research," Sustainability, MDPI, vol. 14(8), pages 1-33, April.
    11. Denis Dennehy & Kieran Conboy & Jennifer Ferreira & Jaganath Babu, 2023. "Sustaining Open Source Communities by Understanding the Influence of Discursive Manifestations on Sentiment," Information Systems Frontiers, Springer, vol. 25(1), pages 241-257, February.
    12. Yosra Miaoui & Noureddine Boudriga, 0. "Enterprise security investment through time when facing different types of vulnerabilities," Information Systems Frontiers, Springer, vol. 0, pages 1-40.
    13. Roya Gholami & Alemayehu Molla & Suparna Goswami & Christopher Brewster, 0. "Green information systems use in social enterprise: the case of a community-led eco-localization website in the West Midlands region of the UK," Information Systems Frontiers, Springer, vol. 0, pages 1-17.
    14. Ashish Gupta & Amit Deokar & Lakshmi Iyer & Ramesh Sharda & Dave Schrader, 2018. "Big Data & Analytics for Societal Impact: Recent Research and Trends," Information Systems Frontiers, Springer, vol. 20(2), pages 185-194, April.
    15. Zhaojun Yang & Jun Sun & Yali Zhang & Ying Wang, 0. "Peas and carrots just because they are green? Operational fit between green supply chain management and green information system," Information Systems Frontiers, Springer, vol. 0, pages 1-19.
    16. Emanuele Gabriel Margherita & Alessio Maria Braccini, 2021. "Industry 4.0 Technologies in Flexible Manufacturing for Sustainable Organizational Value: Reflections from a Multiple Case Study of Italian Manufacturers," Post-Print hal-03442440, HAL.

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