Using Cost Benefit Analysis for Enterprise Resource Planning Project Evaluation: A Case for Including Intangibles

Using Cost Benefit Analysis for Enterprise Resource Planning Project Evaluation: A Case for Including Intangibles

Kenneth E. Murphy (Florida International University, USA) and Steven John Simon (Florida International University, USA)
Copyright: © 2002 |Pages: 22
DOI: 10.4018/978-1-931777-06-3.ch014
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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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