cost/benefits analysis


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cost/benefits analysis

The study that projects the costs and benefits of a new information system. Costs include people and machine resources for development as well as running the system.

Tangible benefits are derived by estimating the cost savings of both human and machine resources to run the new system versus the old one. Intangible benefits, such as improved customer service and employee relations, may ultimately provide the largest payback, but are harder to quantify.
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