Looking at the big picture of IS investment appraisal through the lens of systems theory: A System Dynamics approach for understanding the economic impact of BIM

Despite the fact that Building Information Modelling (BIM) is one of the most promising technological developments for the architecture, engineering and construction (AEC) industry, the body of literature addressing its financial implications on corporate level is still limited. Therefore, we propose a quantification model that is based on design science research and provides an enhanced understanding of cost and benefit implications arising from BIM investments from a systems theory perspective. The quantification model developed in System Dynamics (SD) is based on a literature review as well as a case study, whereby the socio-technical nature of BIM, its various tangible and intangible benefits as well as its multiple impact levels on the corporate system are taken into account. The results of our simulation experiments within the scope of the case study reveal that the interplay of costs and benefits of BIM with the subsystems of the organisation is manifold, which results in a long-term improvement of the company's economic performance. Through the lens of systems theory, the financial impacts of the BIM investment can be examined by integrating all costs and benefits into the subsystems of the organisation and by investigating their interplay on system level rather than treating them as isolated system elements.