Discuss the four different costbenefit analyses that compani

Discuss the four different cost-benefit analyses that companies must take into account when formulating an IT strategic plan

Solution

The four different cost-benefit analyses that companies must take into account when formulating an IT strategic plan are :-

1. Planning for and Justifying IT Applications : The organisation must justify the need of an IT application and must do a cost/benefit analysis of it and justify their decision.
2. IS Operational Plan: The plan comprises of projects that the managers will execute . Things like Our Mission/Goals , IS Environment , Objectives of the IT function , Constraints of the IT function etc.
3. Evaluating and Justifying IT Investment: Benefits, Costs & Issues : We need to access the cost where we should dela with fixed cost, ownership cost. As well as we need to access benefits/values and then compare two of them.
4. Do Cost-Benefit Analysis: There are lot of approach to perform cost-benefit analysis but some of the common ways are by using net present value, break even analysis, business case approach and return on investment etc.

Thanks, Let me know if there is any concern