Page 80 - E1 Integrated Workbook STUDENT 2018

Chapter 6

Evaluating a new information system

Cost-benefit analysis (CBA) can be used to assess the expected
costs and benefits of the information system.

Costs of a new system Benefits of a new system

Initial costs:  Enhanced efficiency and capacity.

 Design and development costs for  More ‘accurate’ information.
bespoke systems or purchase cost  Better access to information.
of hardware/software.
 Better sharing of information.
 Cost of testing and implementation.
 Improved communication.
 Training costs.
 Better decision making and
Running costs:
customer service.
 Labour time.

 Cost of material, e.g. replacement
parts.

 Cost of service support, e.g. IT
helpdesk.

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