A hedonic wage model‐based methodology for evaluating the benefits of IT investments in public‐sector organisations

Journal of Enterprise Information Management 08/2004; 17(4):269-275. DOI: 10.1108/17410390410548670
Source: DBLP


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.

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