The Cost And Benefit Analysis Of Information Technology Investment

In the nineties of the twentieth century, information technology investment becomes a topical subject in the world. There emerge many disputes on the large amount information technology investment. Can it bring comparative value for the enterprises? It is the question managers and scholars have concerned all the while. The purpose of evaluating information technology investment is to find out the potential value of it, which will influence the decision and action of the concerned people through comparing the investment expectation and the actual information. Accordingly it can insure the right direction of information technology investment and achieve the largest benefits. The above mentioned is the issues involved in the writing of this thesis.This thesis first makes a detailed study of the relative literatures of information technology investment and introduces information technology investment evaluation theories, three research phases of IT paradox and the theoretical foundation of information technology investment evaluation. Then it defines the concerned concepts of the cost and benefit of information technology investment, analyzes the basic theories of information technology investment, and compares process approach and variance approach. Besides, it also discusses the analysis process such as WSR methodology, EIAC model and the methods of information technology investment from four different aspects.The main body of the thesis elaborates on the application of BSC in the office automation system of Anhui University. It analyzes entirely the cost and benefit of the office automation system of Anhui University. This part expatiates on the principles, the evaluation steps and four angles of BSC. Firstly, it describes the corresponding index based on four angles of BSC. Then, it studies the revolution of the office automation system and the implementation situation of the office automation system of Anhui University. According to the peculiarity of the office automation system of Anhui University and BSC method, it chooses BSC to process the case study on the cost and benefit of the office automation system. Finally, it discusses the problems and their countermeasures that have been found in the process of analysis.Based on the literature review on the cost and benefit analysis of the information technology investment, this thesis adopts the study methods such as literature study, case study and data analysis. The emphasis is laid on the case study on the office automation system of Anhui University. This part combines qualitative methods and quantitative methods. On the one hand, it appeals to the organizations for attaching importance to the evaluation of the return of information technology investment; On the other hand, it provides the organizations with an effective analysis method and example in order to gain the maximal benefits.