Using cost benefit analysis for enterprise resource planning project evaluation: a case for including intangibles

2005 ◽  
Author(s):  
K.E. Murphy ◽  
S.J. Simon
Keyword(s):  
Enterprise Resource Planning ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Resource Planning ◽  
Project Evaluation ◽  
Benefit Analysis ◽  
Planning Project

Using Cost Benefit Analysis for Enterprise Resource Planning Project Evaluation

2001 ◽  
pp. 154-170 ◽  
Author(s):  
Kenneth Murphy ◽  
Steven John Simon
Keyword(s):  
Enterprise Resource Planning ◽  
User Satisfaction ◽  
Large Scale ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Resource Planning ◽  
Business Case ◽  
Benefit Analysis ◽  
Large Computer ◽  
Planning Project

The goal of this chapter is to demonstrate how cost benefit analysis can be applied to large-scale ERP projects, and that these methods can incorporate the intangible benefits, e.g., user satisfaction. Detailed information on the business case utilized by a large computer manufacturer in their decision to implement the SAP system R/3 is presented. We illustrate how this organization utilized techniques to include intangibles in the implementation project’s cost benefit analysis. The chapter concludes with a discussion on the state of valuing ERP projects and questions to be answered in the future.

Using Cost Benefit Analysis for Enterprise Resource Planning Project Evaluation

2011 ◽  
pp. 245-266 ◽  
Author(s):  
Kenneth E. Murphy ◽  
Steven John Simon
Keyword(s):  
Enterprise Resource Planning ◽  
User Satisfaction ◽  
Large Scale ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Resource Planning ◽  
Business Case ◽  
Benefit Analysis ◽  
Large Computer ◽  
Planning Project

The goal of this chapter is to demonstrate how cost benefit analysis can be applied to large-scale ERP projects and that these methods can incorporate the intangible benefits, e.g., user satisfaction. Detailed information on the business case utilized by a large computer manufacturer in their decision to implement the SAP system R/3 is presented. We illustrate how this organization utilized techniques to include intangibles in the implementation project’s cost benefit analysis. The chapter concludes with a discussion on the state of valuing ERP projects and questions to be answered in the future.

Cost-Benefit Analysis

2016 ◽  
Author(s):  
Robin Boadway
Keyword(s):  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Project Evaluation ◽  
Benefit Analysis ◽  
Normative Approach ◽  
Welfare Change ◽  
Individual Welfare ◽  
It Application ◽  
Welfare Changes ◽  
Conceptual Difficulties

This is an overview of the methods used to evaluate projects or policies when a normative approach is taken based on individual preferences. The evaluation of individual welfare change is first outlined and related to the concepts of willingness-to-pay and willingness-to-accept. The use of individual welfare measures in project evaluation is outlined. This is followed by approaches to aggregating individual welfare changes. The case for ignoring equity considerations based on the compensation criterion is critically discussed. The use of a social welfare function for cost-benefit analysis is presented, and it application to project evaluation outlined. Several extensions are considered, including the evaluation of non-marketed commodities, the treatment of uncertainty, and multi-period project evaluation. Throughout, the conceptual difficulties of measuring and aggregating welfare change are emphasized.

Public Sector Investment Planning for Developing Countries By E. V. K. FitzGerald. London : MacMillan Press Ltd. 1978. xv + 200 pp.Price : £ Stg. 3.50.

1979 ◽  
Vol 18 (2) ◽  
pp. 187-189
Author(s):  
A. R. Kemal
Keyword(s):  
Cost Benefit Analysis ◽  
Critical Evaluation ◽  
Cost Benefit ◽  
Development Planning ◽  
Project Evaluation ◽  
Economic Effects ◽  
Benefit Analysis ◽  
Investment Planning ◽  
Evaluation Exercise ◽  
Evaluation Techniques

While the book under review provides a critical evaluation of cost-benefit analysis, it mainly focuses on the relevance and utility of project evaluation techniques for development planning. It has been argued in the book that no project can be meaningfully evaluated in isolation because its impact not only is confined to the project itself but tends to spill over to other projects as well. Such spill-over effects become all the more critical when the induced economic effects of that project are not marginal. In addition to the interdependence between projects, the author has drawn attention to an oft-neglected but very important aspect of cost-benefit analysis: Shadow prices are not very meaningful in the context of project evaluation exercise in the real world if they are computed without considering the structure of the economy, the pace of development and income distribution.

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