Cost-benefit Analysis In The Power Of Enterprise Information Systems Investment Evaluation

Value evaluation of the information system investment is concerned by business managers, IT industry people and many academics and experts, and the cost-benefit analysis is an important part of value evaluation of the information system, and is a foundational work.In recent years, along with the deepening of reform and opening up, China's power industry has continued development and companied with the rapid development of information technology, enterprise information system investment has grown year after year. According to statistics, in 2007 China's power industry IT investment for the first time had been more than 10,000,000,000 yuan. Strengthening the management and enhancing core competitiveness, reducing costs and improving business efficiency has been the most important business objectives. Using information technology into the power business to has been the most effective means. In the face of high input of enterprise information system, value evaluation of the electricity enterprise information system investments has become the focus of the attention of the electricity corporate managers.Value evaluation of power enterprise information system involves in a wide range of specific elements, complex patterns. The traditional methods of financial analysis cannot support the investment decisions. At present, domestic and foreign enterprises' researches in the field of value evaluation of electricity enterprise information system investments is still at the exploratory stage, and lacked of specific guidance of the theory and method. As a result, how to carry out the value evaluation of electricity enterprise information system investments, and promote electricity enterprise information system to realize the value of the investment, has become a high degree of concern and a practical problem needed to be solved.This article views from the point of cost-benefit analysis, based on the research result of scholars domestic and abroad and proposes cost-benefit analysis method for value evaluation of electricity enterprise information system investment and program selection. It studies the process of value evaluation of enterprise information system investment, and builds a index system of the electricity enterprise base on the point of cost-benefit analysis. And it uses the index system for AHP method in process of value evaluation of enterprise information system investment.This article is divided into six chapters: Chapter 1 tells of the background and significance of the research and the contents of the papers; Chapter 2 tells of the development of information system of power companies, outlined investment and d evaluation of investment in cost-benefit analysis methods; Chapter 3 introduced the method of cost estimates and identification in the investment for information systems of electric power company ; Chapter 4 introduced the method of effectiveness identification and analysis in the investment for information systems of electric power company ; Chapter 5 based on earlier studies, combined with AHP method, introduced the electric power enterprise information systems cost-effectiveness analysis methods and applications; Chapter 6 is the conclusions of this paper and prospects. Based on the view of cost-benefit analysis point, this article proposes a process and a method for value evaluation of the electricity enterprise information system investments, and it is designed to promote value evaluation of the electricity enterprise information system investments and to realize the value of the investment of the information systems.