1	Justifying Information Systems Projects IS 460 Notes by Thomas Hilton
2	Topics Why Develop Information Systems Cost-Justification Non-cost Justification
3	Why Develop Information Systems? Information is the intended output Data is the main input Is there a difference? There had better be!
4	Data: Objective Measures of Traits of Real-World Objects Objective Not subjective Replicable Measures Values Quantitative Qualitative
5	Information: Data Aggregated and Placed in a Useful Context Data see prior Aggregation Groups Calculations Manipulations
6	Information Quality Six Traits Accuracy Timeliness Relevance Verifiability Accessibility Security
7	Cost-Justification “Is the system worth its cost?” Compare “worth” with “cost” Various Methods ROI Present Value Cost-Benefit Analysis
8	Cost-Benefit Analysis Conceptually Simple Quantify all Costs Quantify all Benefits Divide Costs by Benefits If C/B Ratio < 1, then Proceed
9	Cost-Benefit Analysis Complex in Practice System Lifespan Tangibles vs. Intangibles Future Orientation
10	Costs People Facilities Supplies Data Hardware
11	Benefits Cost Elimination Worker Process Carrying Cost Cost Reduction Efficiency Productivity Maintenance
12	Cost-Benefit Analysis Table
13	An Example Network Design Proposal
14	Non-Cost Justifications Cost-benefit analysis is not iron-clad Often, detractors can discredit it Therefore, it must be accompanied by non-cost justifications Organizational culture Strategic direction Potential competitive advantage Environmental Imperatives Top Management Support
15	Now You Do It!