Cost/Benefit Analysis

In Chapters 5 and 6, we discussed various tools analysts use for gathering details about the system under study. Data gathering is only one part of systems analysis, however. The next steps are to examine the data assess the situation, look at the al alternatives, and recommend a candidate system. The costs and benefits of each alternative guide the selection of one alternative over the others. Since this aspect of analysis is so important, it will take up most of the chapter.

This chapter discusses approaches to developing design recommendations for the end user. Each approach has costs and benefits that are compared with those of other approaches before a final recommendation is made. The outcome a system proposal (also called a project proposal) that summarizes the findings of the analysis and states the recommendations for design .By the end of this chapter, you should be able to evaluate how current operations are performed, the categories of costs and benefits, key methods for cost/benefit analysis, and how a system proposal is developed.