The quantification of decision support benefits within the context of value analysis

  • Authors:
  • Arthur Money;David Tromp;Trever Wegner

  • Affiliations:
  • -;-;-

  • Venue:
  • MIS Quarterly
  • Year:
  • 1988

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Abstract

Traditional cost-benefit approaches to evaluating the effectiveness of decision support systems are generally regarded as inadequate. More recent approaches account for the intangible benefit overlooked by traditional cost-benefit analysis, but still attempt to express benefits in terms of costs. This paper focuses on a value analysis. It advocates a methodology for (1) identifying significant intangible benefits for a specific decision support system (2) quantifying these benefits in value terms, and (3) establishing a decision rule for identifying the significance of the proposed system. Finally, an alternative approach at deriving the benefit utilities is examined.