The cost/benefit study: a competitive edge

The well-executed cost/benefit study is a tool administrators can use effectively to gain a competitive edge. First, by identifying the tangible and the intangible benefits, the risks and the opportunities, the cost/benefit study provides information crucial to the decision-making process. Secondly, by developing an action plan for realizing benefits while controlling costs, the cost/benefit study helps administrators insure an optimum return on each of their investments. The results of this study not only help in the evaluation and justification of proposals, for new computer system, but can easily be incorporated into the evaluation process for new business ventures. An area often overlooked is the application of the cost/benefit study to the problem-resolution process. In identifying the constraints of the present system as well as the costs, the study helps administration pinpoint the causes of particular problems. In summary, the two principal deliverables from the cost/benefit study are the identification of benefits and the development of an action plan for realizing those benefits.