Cost-Benefit Analysis in Information Systems Development and Operation* JOHN LESLIE KING AND EDWARD L. SCHREMS The URBIS Group, Pubhc Pohcy Research Organization, Unwers~ty of Cahfornia, Irvme, Cahfornia 92717 Cost-benefit analysis of computer-based mformatmn systems is a major concern of managers in pubhc and private orgamzatlons using computers. This paper introduces and reviews basic elements of cost-benefit analysis as applied to computerized informatmn systems, and provides dmcussmn of the major problems to be avoided. Keywords and Phrases: cost-benefit analysis, management of computing, evaluating projects CR Categories: 1.3, 2.40, 2.41, 2.49, 3.52, 3.53 INTRODUCTION Major decisions concerning computerbased information systems are always made in light of some specific criteria, whether explicit or not. These criteria may range from the subjective preferences of top decision-makers to more rigorous criteria of decision analysis. Due to the expenses and difficulties associated with establishing or altering any large computerbased information system, most organizations prefer to conduct an "objective" costbenefit analysis before coming to major decisions regarding their information systems. Presumably, the results of such * Thin paper is a product of the U R B I S Project, which studies the uses and effects of computers in U S local governments. It is conducted
ACM Computing Surveys (CSUR) – Association for Computing Machinery
Published: Mar 1, 1978
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