The economic justification of investments in information technology (IT) is a basic issue for IT management in private and in public‐sector organisations. Usually, the expenses made for any investment are compared to the cost saved. While the costs for implementing a new system are uncertain, only a small percentage of the benefits accrues as cost savings given the type of IT systems used today and the particularities of the public‐sector. In this paper, we present a methodology for the monetary quantification of the benefits resulting from the introduction of a modern IT application and demonstrate its use on the basis of a case of prison administration.
Cilek, P., Janko, W., Koch, S., Mild, A. and Taudes, A. (2004), "A hedonic wage model‐based methodology for evaluating the benefits of IT investments in public‐sector organisations", Journal of Enterprise Information Management, Vol. 17 No. 4, pp. 269-275. https://doi.org/10.1108/17410390410548670
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