VAR Analysis: A Framework for Justifying Strategic Information Systems Projects

Ting Peng Liang, Ming Je Tang

Research output: Contribution to journalJournal Article peer-review

8 Scopus citations


Recently, strategic implications of information technology have attracted much attention. Many successful applications have been analyzed and frameworks have been developed to help firms identify opportunities for applying strategic information systems 1992. However, little research has studied how these strategic opportunities can be evaluated. Previous applications of SIS have indicated that competitive advantages are not guaranteed and risks always exist. Hence, for a firm pursuing strategic uses of information technology, careful evaluation of potential opportunities before their implementation is crucial. In this article we present a competition-oriented approach to analyzing potential competitive advantages. This approach enhances the traditional cost-benefit analysis to fit the need for evaluating SIS. It consists of three major modules: value analysis, advantage analysis, and risk analysis. An example showing how a project having negative net present values can become feasible in VAR analysis is illustrated.

Original languageEnglish
Pages (from-to)27-35
Number of pages9
JournalACM SIGMIS Database
Issue number1
StatePublished - 03 01 1992
Externally publishedYes


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