A viability criterion for computer system development projects
A manager facing the decision whether to proceed with a proposed computer system development project needs to determine whether its benefits are worth more than its costs. This can be done by applying a simple mathematical formula to calculate the project's 'net worth', as the sum of...
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| Format: | Article |
| Language: | English |
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AOSIS
1984-09-01
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| Series: | South African Journal of Business Management |
| Online Access: | https://sajbm.org/index.php/sajbm/article/view/1119 |
| Summary: | A manager facing the decision whether to proceed with a proposed computer system development project needs to determine whether its benefits are worth more than its costs. This can be done by applying a simple mathematical formula to calculate the project's 'net worth', as the sum of the annual benefits obtainable during the system's life span, less its development costs. The formula recognizes that a system's annual benefit, comprising enhanced informational value plus reduction In data processing cost, will change as a result of obsolescence, cost of capital, organizational growth and learning. |
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| ISSN: | 2078-5585 2078-5976 |