An Approach for Measuring Benefit and Cost in Management and Information Systems
NAVY PERSONNEL RESEARCH AND DEVELOPMENT CENTER SAN DIEGO CA
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A technique is developed for assessing benefit and, to a more limited degree, cost in order to permit meaningful cost-benefit analysis of management and information systems. The technique is most immediately a response to requirements in analyzing a large and complex manpower planning and programming system. It is more generally a response to an apparent gap in existing cost benefit methodology in regard to obtaining useful performance measures in managerial information systems. A model with three prime determinants of benefits is postulated Potential contribution, Received value, and Utilized value. Other candidate factors are also considered, notably feedback. A methodology for costing inputs and outputs is also developed as an important complement to the benefit measures. Analysis results are presented for preliminary data gathered via a questionnaire. Alternative models for considering the measures are discussed. A plan for detailed analysis of the model using extensive data now being collected, in addition to proposed laboratory experimentation, is presented.
- Administration and Management
- Information Science