Cost/benefit analysis of IT
Why is it difficult to do cost/benefit analysis of IT?

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Cost Benefit Analysis (CBA) is difficult only because assumptions can be hard to validate. Things like opportunity costs, expected future benefits, and the allocation of fixed costs are not always as straightforward as you might first think. Rather, CBA is part art and part science. Look at all the failed dot coms -- I bet they had wonderful cost/benefit statements!

For more information on cost/benefit analysis and other return on investment issues, check out searchCRM's Best Web Links on Measuring ROI.


This was first published in July 2001