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

ArticleinJournal of Enterprise Information Management 17(4):269-275 · August 2004with25 Reads
DOI: 10.1108/17410390410548670 · Source: DBLP

    Abstract

    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.