DISCUSSION
TOPICS
JUSTIFYING I.T.
A discussion paper on the need to specify
benefits for Expenditure on Information Technology
and a guide as to how to do it.
THE CASE FOR FINANCIAL JUSTIFICATION FOR
INVESTMENT IN I.T.
SEVEN KEY STEPS TO ASSIST I.T. INVESTMENT
DECISIONS
- Identify the Current Value of the Outputs
from the system
- Identify how that value could be increased
- Identify the actions necessary to increase
their value
- Calculate the cost, including the cost of
time, of the necessary actions
- Compare the relative benefits and costs with
other alternatives
- Implement the most cost effective actions
- Review the impact of the actions to gain
information to assist future decisions
REMEMBER
Organisations gain benefit from investment in
I.T. only if as a result of the investment,
decisions or actions are taken which do one or
more of the following:
- Increase Sales Volume
- Increase Sales Profitability
- Reduce Cost Levels
- Increase Cost Effectiveness
- Improve Cash flow