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Using Cost Benefit Analysis for Enterprise Resource Planning Project Evaluation: A Case for Including Intangibles
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Author(s): Kenneth Murphy (Florida International University, USA)and Steven John Simon (Florida International University, USA)
Copyright: 2001
Pages: 17
Source title:
Information Technology Evaluation Methods and Management
Source Author(s)/Editor(s): Wim Van Grembergen (University of Antwerp – Antwerp Management School, Belgium)
DOI: 10.4018/978-1-878289-90-2.ch010
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Abstract
The goal of this chapter is to demonstrate how cost benefit analysis can be applied to large-scale ERP projects, and that these methods can incorporate the intangible benefits, e.g., user satisfaction. Detailed information on the business case utilized by a large computer manufacturer in their decision to implement the SAP system R/3 is presented. We illustrate how this organization utilized techniques to include intangibles in the implementation project’s cost benefit analysis. The chapter concludes with a discussion on the state of valuing ERP projects and questions to be answered in the future.
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