Temporal Analysis of Information Technology Chargeback Systems

• Published in: Information resources management journal 1998-04, Vol.11 (2), p.5-13
• Main Author: Drury, D.H
• Format: Article
• Language: English
• Subjects: Business management; Chargeback systems; Chargebacks; Computer applications; Data processing; Information processing; Information technology; Organizations; Systems planning
• ISSN: 1040-1628; 1533-7979
• DOI: 10.4018/irmj.1998040101

Planning and controlling information technology remains a management priority in the 1990s. The importance of effectively using the substantial investment is increasing with rapid technological change and competition. Effectively using the information processing resource is becoming a management priority. Since initial implementations, effectively using information processing resources has been difficult. With the pace of technological change, increasing investments, and a growing diversity of users and usages, the importance of effective cost control has increased. A widely advocated method of bringing order to this state of affairs is the use of a chargeback system whereby users are charged and made responsible for the information costs which they incur. From the earliest applications, some organizations have adopted chargeback systems. While there have been studies in the intervening period on chargeback systems, chargeback remains a controversial management technique. In 1980, a study was conducted on the usage and practices of chargeback systems. This same set of companies recently provided information about their current practices. This paper reports the findings of the temporal comparison. The results suggest that chargeback is not a panacea. Further, the objectives in using, or not using chargeback systems have changed substantially. A new set of problems has emerged. Organizations are having difficulty adapting the chargeback approach. There is less satisfaction in using them, although chargeback systems are still widely used. The final section of the paper addresses reasons for these changes and suggests issues which have yet to be resolved in using chargeback effectively in the emerging information technology environment.