Business, 20.10.2020 16:01 christinaaaat

Discuss the different cost–benefit analyses that companies must take into account when they formulate an IT strategic plan.

Answers: 1

Show answers

Answers

Answer from: omarabady

The various cost-benefit analyses that companies must take into account when they formulate an IT strategic plan are:

Analysts use the net present value (NPV) Return on Investment (ROI) Breakeven analysis

Explanation:

To formulate an IT strategic plan means to create an IT plan that helps with the organization's long-term and short-term objectives. Many times there are several alternatives to select from. The alternative with the greatest amount of benefit and at the least cost to the organization is the best.

A comparison between the cost and the benefits of each alternative is called cost-benefit analyses. Note that "analyses" is plural.

Some of the methods that are utilized to evaluate each alternative plant for costs against benefits are:

Net Present Value (NPV) approach adopts the investment point of view in the analysis of the cost and the benefits accruable from an IT Strategic Plan.

NPV examines the present value of cash inflows and the present value of cash outflows over a period of time with a view to compare the difference between both factors. When applied to IT strategies, it is assumed that the benefits accruable from the IT project can be compared in monetary terms. A project with a positive NPV is a viable project. Those with zero NPV will return exactly the amount invested. A negative NPV is a loss. The project with the highest NPV is the most valuable in terms of cost versus benefits.

Return on Investment (ROI)

This approach is similar to the NPV. The project with the highest ROI and the least cost will pass for the best IT strategy.

Return on Investment is simply the result of dividing the Net Profits by the Initial cost of the investment. It is measured in percentages. The IT plan with the highest percentage is the best.

Breakeven Analysis

This also assumes that the expected results from the IT plan are measurable in monetary terms. A company is said to have broken even when they have recovered the exact amount invested into a business.

The shorter the breakeven period, the better the business/IT strategy.

Cheers

Answer from: Quest

answerthere are 5 cte courses that you take;

Answer from: Quest

Whats the question? ?

Another question on Business

Business, 22.06.2019 07:40

The cutting department of cassel company has the following production and cost data for july. production costs 1. transferred out 12,300 units. beginning work in process $0 2. started 3,900 units that are 60% materials 62,856 complete as to conversion labor 12,622 costs and 100% complete as manufacturing overhead 23,100 to materials at july 31. materials are entered at the beginning of the process. conversion costs are incurred uniformly during the process. determine the equivalent units of production for (1) materials and (2) conversion costs. materials conversion costs total equivalent units of production link to text link to text compute unit costs. (round unit costs to 2 decimal places, e.g. 2.25.) materials $ conversion costs $ link to text link to text prepare a cost reconciliation schedule. (round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.) cost reconciliation costs accounted for transferred out $ work in process, july 31 materials $ conversion costs total costs $

Answers: 1

Answer

Business, 22.06.2019 12:50

Demand increases by less than supply increases. as a result, (a) equilibrium price will decline and equilibrium quantity will rise. (b) both equilibrium price and quantity will decline. (c) both equilibrium price and quantity will rise

Answers: 3

Answer

Business, 22.06.2019 13:30

How does hipaa address employee’s access to e-phi?

Answers: 1

Answer

Business, 22.06.2019 17:30

One of your new suppliers, kim, has been hearing rumors about your firm’s lack of capability to deliver high quality products and writes an email asking you to address the claims being made. in replying to her, you want to be sure that you are very clear and leave no room for misinterpretation. which of the following aspects of effective communication should you give the most attention? (a) making sure you understand kim’s areas of expertise. (b) supporting your reply with relevant data and facts. (c) establishing your credibility as an expert. (d) paying attention to implied communications.

Answers: 2

Answer

You know the right answer?

Discuss the different cost–benefit analyses that companies must take into account when they formulat...

Questions