Cost/benefit analysis of geographic information system implementation: Case of the Illinois Department of Transportation

This research is a comprehensive investigation of the costs and benefits of Geographic Information System (GIS) implementation in the Illinois Department of Transportation (IDOT). GIS is a powerful information technology with a multitude of engineering and management applications across the enterprise.; Based on a national survey of State DOT upper managers and Information Systems managers and on Management Information System design principles, a methodology was developed to effect implementation in IDOT. Phases of this methodology included Situational Analysis, Strategic Vision, Cost/Benefit Analysis, and Strategic Plan.; The implementation strategy was deployed in June 1995. The Situational Analysis provided a comprehensive investigation of the internal/external environments and GIS technologies. The Strategic Vision developed specific implementation actions including an extensive GIS demonstration package.; Upon approval by executive management, the author conducted a Department-wide GIS educational effort with forms to identify candidate projects. Fourteen major GIS projects, which could reasonably be put into production within five years, were selected based on management priority, ease of implementation, and user commitment.; These projects provided the basis for a comprehensive Cost/Benefit analysis over Fiscal Years 1995 through 2004. The costs included historical costs of the GIS investigation/development effort and future costs for technical development and user support. The greatest portions of costs were for personnel (67%), consultant services (19%), hardware (8%) and software (2%).; This research investigated two benefit categories, Efficiency and Effectiveness Benefits. Efficiency Benefits resulted from the replacement of existing work activities with GIS products. Traditionally intangible Effectiveness Benefits resulted from such areas as improved decision making. This thesis conservatively estimated the Efficiency Benefits of improved information transfer through GIS for accident analysis and multi-year roadway program development.; The Cost/Benefit analysis over the ten-year period produced an estimated Net Present Value of {dollar}2,981,000 and an Internal Rate of Return of 99.8% for GIS implementation. This knowledge of organizational costs and benefits enabled IDOT to strategically allocate organizational resources.