ABSTRACT

The information system could have a significant impact on the performance of the business though this should be assessed within the perspective of all strategic options. Project planning software may have the facility for attaching costs to resources used in activities planned. This can provide a means for determining indirect costs. From a practical point of view, the one area where costs are most likely to get out of control is those related to the use of consultants. On-site attendance of vendor personnel can boost costs if uncontrolled or the unexpected occurs. Once the need has been defined and the costs identified, it is useful to determine what the benefits are and whether the benefits justify the cost. The aim is to get a useful picture of the situation in terms of what to expect. The identified costs are assessed within the context of what is understood about the future and the benefits likely to be gained.