Analysis of The Impact of Information Technology Investments - A Survey of Indonesian Universities

In recent years, the utilization of information technology has been magnificently increased in service industries,
particularly, education institution, which by using Information Technology related products such as academic information
system and learning management system. In Indonesia, universities invest enormous resources in information technology
(IT), with little evidence of the latter’s effectiveness. Stakeholders struggle with gauging how effective or ineffective
making these investments truly is, given the lack of instruments of measurement by which to establish, for instance, an
internal rate of return or a period of recovery on investments. This paper investigates the impact of investment in
information technology on the return on assets (ROA) of selected private universities in Indonesia for the period 2008 -
2014 using Adapted Information Economics. By using this method, it is possible to implement into other university.
Primary and secondary data were collected during this research. The study recommends that universities should increase
investments in software, hardware and infrastructure which will enhance their Management Information System and
profitability.