Economic Analysis of Information System

Abstract

This paper examines the utilities of present value analysis, discounted payback analysis, uniform annual cost, benefit-cost ratio, savings investment ratio, internal rate or return, and break even analysis, as economic analysis techniques. These techniques are analyzed using comparative four-way data sets that have front-loaded and back-loaded costs and front-loaded and back-loaded benefits. The findings of this analysis are then summarized in a matrix that scores the category of utility for each technique. An expert system (COSTEX) is then developed using the Intelligence Compiler expert system shell. The system directs MIS managers in the selection of appropriate techniques of analysis for a given set of economic analysis contingencies. The Basic Economic Analysis Decision Support framework and a tutorial on the methodologies and virtues of each of the economic analysis techniques.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Mar 01, 1991
Accession Number
ADA243079

Entities

People

  • Charles G. Walker Jr

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Application Software
  • Computers
  • Data Processing
  • Data Sets
  • Decision Support Systems
  • Economic Analysis
  • Economics
  • Expert Systems
  • Information Systems
  • Investments
  • Money
  • New York
  • Revenue
  • Standards
  • Test And Evaluation
  • United States

Readers

  • Computer Science.
  • Geospatial Intelligence and Artificial Intelligence Analytics
  • Life Cycle Cost Analysis