* Net Present Value (NPV)
* Return On Investment (ROI)
* Breakeven Analysis
* The Business Case Approach
* * * * *
* Net Present Value (NPV)
Using the net present value (NPV) method,
analsyst convert future values of benefits to their present-value
equivalent by "discounting" them at the organization's cost of funds.
They can then compare the present value of the future benefits to the cost required
to achieve those benefits to determine whether the benefits exceed the costs.
* Return On Investment (ROI)
measurers management's effectiveness in generating profits with its available assets.
ROI is calculated by dividing net income attributable
to a project by the average assest invested in the project.
ROI is a percentage, and the higher the percentage return, the better.
* Breakeven Analysis
determines the point at which the cumulative dollar value of the benefits from a project
equals the investment made in the project.
* Business Case Approach
, system developers write a business case to justify funding one or more specific application or projects.
You will be a major source of input when business cases are developed
because these cases describe what you do, how you do it,
and how a new system could better support you.
Source:
Introduction to Information Systems - Third Edition
Enabling and Transforming Business
By R. Kelly Rainer, Casey G. Cegielski
Page 397