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How to Measure the Internet

  • Date Submitted: 12/26/2013 06:54 PM
  • Flesch-Kincaid Score: 39.6 
  • Words: 3420
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Synopsis
Worldwide government, firms and project teams is facing a difficult situation to measure the value creation through information technology.   This essay argue that the challenges of measure value creation through IT are occur in three different levels which are Macro-economic level, Micro-economic level, and project level. Some studies and cases have been used to demonstrate those challenges. Although, the problems on current evaluation system can be fixed as we can find the reasons and drive of those problems. There is couple reasons result those challenges. For Macro-economic level and Micro-economic level, there is a lack of well-established classification and identification. Also, government do not have adequate data are due to the nature of IT, which results difficulty to collect the data. Finally, there are some general problems for measuring all intangible assets in accounting regulation. Some approaches have been introduced in this essay to address those challenges. Those approaches include value chain analysis, economic values, future market value, and cash flow return on investment. Also, government and regulation bodies should develop well-established code to guide the measuring of value creation through IT. Also, the examples about those in approaches in different countries and companies have been introduced to demonstrate the reliability.

Introduction
All industrialised economies are moving from investment in physical assets such as low skilled labour to investment intangible assets (Blaug & Lekhi 2009, p. 3). AASB 138 Intangible Assets defined intangible assets as identifiable non-monetary asset without physical substance. This definition includes software (Australian International Financial Reporting Standards 2005, p. 1). The result of investment in intangible asset is arising knowledge-based capital, which would lead competitive advantage on R&D, design, brand equity, software, and human and organisational capital. For many...

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