Datamation
Cost-Benefit Analysis in Information Systems Development and Operation
ACM Computing Surveys (CSUR)
Office Automation
Cost benefit analysis of information systems: a survey of methodologies
COCS '88 Proceedings of the ACM SIGOIS and IEEECS TC-OA 1988 conference on Office information systems
VAR analysis: a framework for justifying strategic information systems projects
ACM SIGMIS Database
Adapting a Robust Multi-genre NE System for Automatic Content Extraction
AIMSA '02 Proceedings of the 10th International Conference on Artificial Intelligence: Methodology, Systems, and Applications
Designing an economic-driven evaluation framework for process-oriented software technologies
Proceedings of the 28th international conference on Software engineering
Cost and benefit analysis of mediated enterprise search
Proceedings of the 9th ACM/IEEE-CS joint conference on Digital libraries
| Hi-index | 0.01 |
The time savings times salary (TSTS) approach is a widely used methodology for the financial justification of office information systems, yet its theoretical basis is largely unexplored. In this paper, we identify its underlying economic model, including five critical assumptions. We find that the model, though somewhat restrictive, is not unreasonable. However, we find that the time-saving-times-salary calculation, per se, is implicitly based on a very particular assumption about how saved time will be used. This assumption has neither a behavioral nor normative basis, and we conclude that the TSTS calculation is not meaningful in most cases. An alternate approach, the hedonic wage model, is proposed. This model overcomes most of the deficiencies of the TSTS approach, although it has somewhat greater data requirements and computational complexity. A case study illustrating the use of the hedonic wage model is presented.