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Why one big picture is worth a thousand numbers: measuring intangible benefits of investments in augmented reality based assistive technology using utility effect chains and system dynamics

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  • Thuy Duong Oesterreich

    (Osnabrück University)

  • Frank Teuteberg

    (Osnabrück University)

Abstract

The body of literature in the area of IT/IS investment evaluation proposes a variety of methods and techniques for the ex-ante assessment of IT/IS investments. However, the financial evaluation of intangible benefits associated with IT/IS investments in general and investments in innovative IT/IS in particular still remains a problem area of high relevance to decision makers. As a consequence, investment decisions are still taken by practitioners as an “act of faith”. With this in mind, it is our primary aim to develop a quantification model for the financial assessment of intangible benefits concerning investments in innovative IT/IS. Based on an augmented reality and smart glasses application scenario from the construction domain, we demonstrate how intangible benefits of innovative IT/IS investments can be visualised and measured more effectively by means of utility effect chains and system dynamics prior to their incorporation into a cost–benefit analysis. Based on design science research, the quantification model is developed by means of a systematic literature review and evaluated using the augmented reality application scenario in construction. The model can serve as an aid to the managerial decision making process by providing an enhanced understanding of the various tangible and intangible benefits associated with the investment.

Suggested Citation

  • Thuy Duong Oesterreich & Frank Teuteberg, 2018. "Why one big picture is worth a thousand numbers: measuring intangible benefits of investments in augmented reality based assistive technology using utility effect chains and system dynamics," Information Systems and e-Business Management, Springer, vol. 16(2), pages 407-441, May.
    • Handle: RePEc:spr:infsem:v:16:y:2018:i:2:d:10.1007_s10257-017-0367-6
    DOI: 10.1007/s10257-017-0367-6
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    Cited by:

    1. Julian Schuir & Frank Teuteberg, 2021. "Understanding augmented reality adoption trade-offs in production environments from the perspective of future employees: A choice-based conjoint study," Information Systems and e-Business Management, Springer, vol. 19(3), pages 1039-1085, September.
    2. Riccardo Giannetti & Lino Cinquini & Mario Rapaccini, 2021. "La valutazione degli investimenti in industria 4.0: oltre l?old wine in new bottles," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2021(suppl. 2), pages 65-90.
    3. Tim Arlinghaus & Kevin Kus & Patricia Kajüter Rodrigues & Frank Teuteberg, 2023. "Visualizing Benefits of Case Management Software Using Utility Effect Chains," Sustainability, MDPI, vol. 15(6), pages 1-14, March.

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