Automation investment appraisals

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dc.contributor.advisorSingh-Sewpersadh, Navitha
dc.contributor.authorVorster, Rikus C
dc.date.accessioned2023-02-23T10:48:17Z
dc.date.available2023-02-23T10:48:17Z
dc.date.issued2022
dc.date.updated2023-02-21T07:28:39Z
dc.description.abstractIntelligent automation software technology is key to remaining competitive in the current growing digital landscape. Appropriate techniques should be used to appraise such investments and make correct automation investment decisions. After a comprehensive literature review, three limitations on automation investment decisionmaking were found in the extant literature: (1) time value of money not considered, (2) interpretative and definitional issues related to the popular Return on Investment (ROI) technique, and (3) the widely recommended Net Present Value (NPV) technique appeared not to have been used. This study aims to identify which automation investment appraisal and valuation techniques are used in South Africa in practice and the relevant metrics applied, to assess these for potential gaps in their application and to ascertain the quality of automation investment decision-making. An online survey questionnaire was distributed to organisations that have invested in automation technology in South Africa to gather data from automation consumers and automation consultants. Payback period, ROI, and budget availability were the most common appraisal techniques used by respondents, followed by popular Discounted Cash Flow (DCF) capital budgeting techniques, NPV and Internal Rate of Return (IRR). The results further point toward deficiencies in the application of appraisal techniques compared to finance literature, which indicates suboptimal quality automation investment decision-making. Important unquantified qualitative factors influencing the decision-making process were also identified. These qualitative factors were considered by respondents more often in their decision-making process than quantitative factors. Future research in this area should include quantifying qualitative factors to improve the quality of automation investment decision-making.
dc.identifier.apacitationVorster, R. C. (2022). <i>Automation investment appraisals</i>. (). ,Faculty of Commerce ,College of Accounting. Retrieved from http://hdl.handle.net/11427/37025en_ZA
dc.identifier.chicagocitationVorster, Rikus C. <i>"Automation investment appraisals."</i> ., ,Faculty of Commerce ,College of Accounting, 2022. http://hdl.handle.net/11427/37025en_ZA
dc.identifier.citationVorster, R.C. 2022. Automation investment appraisals. . ,Faculty of Commerce ,College of Accounting. http://hdl.handle.net/11427/37025en_ZA
dc.identifier.ris TY - Master Thesis AU - Vorster, Rikus C AB - Intelligent automation software technology is key to remaining competitive in the current growing digital landscape. Appropriate techniques should be used to appraise such investments and make correct automation investment decisions. After a comprehensive literature review, three limitations on automation investment decisionmaking were found in the extant literature: (1) time value of money not considered, (2) interpretative and definitional issues related to the popular Return on Investment (ROI) technique, and (3) the widely recommended Net Present Value (NPV) technique appeared not to have been used. This study aims to identify which automation investment appraisal and valuation techniques are used in South Africa in practice and the relevant metrics applied, to assess these for potential gaps in their application and to ascertain the quality of automation investment decision-making. An online survey questionnaire was distributed to organisations that have invested in automation technology in South Africa to gather data from automation consumers and automation consultants. Payback period, ROI, and budget availability were the most common appraisal techniques used by respondents, followed by popular Discounted Cash Flow (DCF) capital budgeting techniques, NPV and Internal Rate of Return (IRR). The results further point toward deficiencies in the application of appraisal techniques compared to finance literature, which indicates suboptimal quality automation investment decision-making. Important unquantified qualitative factors influencing the decision-making process were also identified. These qualitative factors were considered by respondents more often in their decision-making process than quantitative factors. Future research in this area should include quantifying qualitative factors to improve the quality of automation investment decision-making. DA - 2022_ DB - OpenUCT DP - University of Cape Town KW - Automation KW - intelligent automation KW - investment KW - appraisal technique KW - discounted cash flow KW - capital budgeting KW - valuation KW - technology LK - https://open.uct.ac.za PY - 2022 T1 - Automation investment appraisals TI - Automation investment appraisals UR - http://hdl.handle.net/11427/37025 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/37025
dc.identifier.vancouvercitationVorster RC. Automation investment appraisals. []. ,Faculty of Commerce ,College of Accounting, 2022 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/37025en_ZA
dc.language.rfc3066eng
dc.publisher.departmentCollege of Accounting
dc.publisher.facultyFaculty of Commerce
dc.subjectAutomation
dc.subjectintelligent automation
dc.subjectinvestment
dc.subjectappraisal technique
dc.subjectdiscounted cash flow
dc.subjectcapital budgeting
dc.subjectvaluation
dc.subjecttechnology
dc.titleAutomation investment appraisals
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMCom
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