Information technology economics

17 

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Teks penuh

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Chapter 14

Information Technology

E

i

Economics

I f

ti

T

h

l

F

M

t 6

th

Editi

Information Technology For Management 6

th

Edition

Turban, Leidner, McLean, Wetherbe

Lecture Slides by L. Beaubien, Providence College

Chapter 14 1

(2)

Learning Objectives

g

j

z

Identify the major aspects of the economics of

y

j

p

information technology.

z

Explain and evaluate the productivity paradox.

z

Describe approaches for evaluating IT

investment and explain why is it difficult to do it.

z

E

l i th

t

f i t

ibl b

fit

d th

z

Explain the nature of intangible benefits and the

approaches to deal with it.

z

List and briefly describe the traditional and

z

List and briefly describe the traditional and

modern methods of justifying IT investment.

(3)

Learning Objectives

g

j

(Continued)

z

Identify the advantages and disadvantages of

y

g

g

approaches to charging end users for IT services

(chargeback).

z

Identify the advantages and disadvantages of

z

Identify the advantages and disadvantages of

outsourcing.

z

Describe the economic impact of EC

z

Describe the economic impact of EC.

z

Describe economic issues related to Web-based

technologies including e-commerce.

z

Describe causes of systems development failures,

the theory of increasing returns, and market

transformation through new technologies

Chapter 14 3

(4)

Moore’s Law

Chap

te

r 14

(5)

Value of Information -

Evaluating

g

One measurement of the benefit of an investment is

the value of the information provided. The

value of

information

is the difference between the

net benefits

information

is the difference between the

net benefits

(benefits adjusted for costs) of decisions made using

information and the net benefits of decisions made

itho t information

without information.

Value of information = Net benefits with information - Net benefits without information

(6)

Cost-Benefits Analyses

Evaluating

Cost-Benefits Analyses

- Evaluating

(7)

“Costing” IT Investments

Costing IT Investments

- Evaluating

Evaluating

z

Placing a dollar value on the cost of IT investments is not a simple

task One of the major issues is to allocate fixed costs among

task. One of the major issues is to allocate fixed costs among

different IT projects. Fixed costs are those costs that remain the

same in total regardless of change in the activity level.

z

Another area of concern is the Life Cycle Cost; costs for keeping it

i

d

li

ith b

d f

i

i

d h

i

th

running, dealing with bugs, and for improving and changing the

system. Such costs can accumulate over many years, and

sometimes they are not even anticipated when the investment is

made.

z

There are multiple kinds of values (tangible and intangible)

{

improved efficiency

{

improved customer relations

{

th

t

f

it l i

t

t

d i d ll

{

the return of a capital investment measured in dollars or

percentage

{

many more …

z

Probability of obtaining a return depends on probability of

Chapter 14 7

(8)

Intangible Benefits

S

h

’ M th d f H

dli

Sawhney’s Method of Handling

z

Think broadly and softly.

y

y

{

Supplement hard financial metrics with soft

ones

z

Pay your freight first.

{

Think carefully about short-term benefits that

th f i ht” f

th i iti l i

t

t

can “pay the freight” for the initial investment

in the project.

z

Follow the unanticipated

z

Follow the unanticipated.

{

Keep an open mind about where the payoff

from IT and e-business projects may come

Chapter 14 8

p j

y

(9)

S

p

ecific Evaluation Methods

p

Chap

te

r 14

(10)

Specific Evaluation Methods

(Continued)

Specific Evaluation Methods

(Continued)

(11)

“Costing” IT

Costing IT

– Economic Strategies

Economic Strategies

(12)

OutsourcingOutsourcing

Chap

te

r 14

(13)

Economic Potential of IT

Economic Potential of IT

(14)

Web-based Systems

– Economic Strategies

Web based Systems

Economic Strategies

Web-based systems can considerably increase productivity and

profitability. However, the justification of EC applications can be difficult.

Usually one needs to prepare a business case that develops the baseline

Usually one needs to prepare a business case that develops the baseline

of desired results, against which actual performance can and should be

measured. The business case should also cover both the financial and

non-financial performance metrics against which to measure the e-

p

g

(15)
(16)

Managerial Issues

g

z

Constant growth and change

z

Constant growth and change.

z

Shift from tangible to intangible benefits.

z

Not a s re thing

z

Not a sure thing.

z

Chargeback.

z

Ri k

z

Risk.

z

Outsourcing.

z

Increasing returns.

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Chapter 14

Chapter 14

Copyright © 2008 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United

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