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A survey of cost-benefit methodologies for information systems

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Information Technology Governance and Strategy Decision Support System Applications Capital Investment and Risk Analysis

Abstract

Cost justification has become one of the important factors influencing the pace of business automation, particularly end user computing. The primary difficulty with it is the evaluation of benefits. This paper identifies and discusses seven methodologies which have evolved to quantify the benefits of information systems. These are: decision analysis, cost displacement/avoidance, structural models, cost effectiveness analysis, breakeven analysis, time savings times salary, and the hedonic wage model.

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References

2013Academy of Management Journal 1967Management Misinformation Systems 1966Cost-Benefit Analysis: A Survey 1974Perceptions of the Value of a Management Information System 1978Cost-Benefit Analysis in Information Systems Development and Operation 1978Cost-Benefit Analysis: A Handbook 1969The Economics of Computers 1977The Value of Information Given Decision Flexibility

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2000An IT/IS acquisition and justification model for supply‐chain management 1991Effective investment in information infrastructures 2012Understanding the Costs of Business Process Management Technology

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