module 1: 1.5 Justifying computer-based information systems

Question 1

Systems are justified if they …..

Answer 1

• are required by law or regulation
  or
• provide more benefit than cost in terms of supporting the business operations, goals, and strategies

Question 2

how does IS monitor and improve performance

if they don’t do this they are not affective?

Answer 2

1. reduce costs
2. increase earnings or net income
3. increase market share
4. improve customer awareness or satisfaction

Question 3

evaluate based on common financial tools such as ROI but

Answer 3

ensure you are looking at total cost of ownership (maintenance, support, and administration)
- recognize difficulties in estimating costs (intangibles)