Cost/Benefits and Feasibility

Cost/Benefits and Feasibility

1. What to do when you want a new IS?

   • Feasibility
   • Justify progressing to the next stage

2. Terms of Reference

   • Quality Criteria
   • Vision and Scope Document
     • Scope, exactly what was in or out
     • Contents
       • Problems statements
       • Vision of the solution

3. Assessing Feasibility

   • Organisational
     • Critical Success Factors
       • Determine whether business objectives will be achieved
     • Key performance indicators (KPI)
       • Used to set targets for CFS
       • Assess whether they have been achieved
       • Always measurable
     • IS may be used to directly to achieve
   • Economic
     • Cost/benefit analysis
       • Tangible costs
         • Hardware purchase costs
         • Software purchase costs
         • Installation costs
         • Migration costs
         • Operating cost
         • Maintenance costs
         • Training costs
         • Wider organisational costs
       • Intangible costs
       • Tangible benefits
         • Cost are easy to identify
         • Improved accuracy
         • Improved availabilty
         • Improved usability
         • Improved utilisation
         • Improved security of information
       • Intangible benefits
     • Return on Investment
     • Net Present Value
   • Technical
     • Used to Control
       • Risk Analysis
       • Capacity Planning
       • Performance and availability modelling
   • Operational
     • Used to control
       • Risk analysis
       • Change management
       • Usability analysis

4. Factors in selecting systems

   • Functionality
   • Ease of use
   • Performance
   • Compatibility
   • Security
   • Stability
   • Prospects for long-term support of product
   • Exstensibility