BADM 2301 Lecture Notes - Lecture 8: Fixed Cost, System Analysis, Resource Allocation
Document Summary
It planning cycle: organizational strategic plan: overall mission, the goal that follows the mission, steps required to reach these goals, organizational strategic planning and existing it architecture it. Strategic planning: it architecture includes technical and managerial aspects of information resources. Types of cost-benefit analysis: net present value: future values discounted at the organization"s cost of funds. Return on investment: project"s net income/average assets invested in project. Breakeven analysis: the point at which the cumulative dollar value of the project"s benefits equals the investment in the project. Business case approach: writing a business case to justify funding of one or more specific applications or projects. Purchase a pre-written application: cost-effective and time-saving, many not include all the desired features, may be difficult to modify or integrate with other software packages, frequently does not meet company needs, does not create competitive advantage.