This refers to a phase in the project selection process whereby the economic performance to a proposed system project is evaluated in terms of the probable costs and benefits.
Cost items considered during a cost-benefit analysis:
o Hardware costs.
o Telecommunication costs.
o Software costs.
o Service costs e.g. training of users, maintenance
o Personnel costs.
These are benefits that cannot be quantified. Intangible benefits that may be considered during const-benefit analysis:
i Improved asset utilization. ii Improved resource control.
iii Improved organizational planning. iv Increased organizational flexibility. v More timely information.
vi Increased organizational flexibility. vii More timely information.
viii Increased organizational learning. ix Legal requirements attained.
x Enhanced employee goodwill. xi Increased job satisfaction.
xii Improved decision-making. xiii Improved operation.
xiv High client satisfaction. xv Better corporate image.