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

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Author(s): Kenneth E. Murphy (Florida International University, USA)and Steven John Simon (Florida International University, USA)
Copyright: 2002
Pages: 22
Source title: Enterprise Resource Planning: Global Opportunities and Challenges
Source Author(s)/Editor(s): Liaquat Hossain (Syracuse University, USA), Jon David Patrick (University of Sydney, Australia)and Mohammad A. Rashid (Massey University, New Zealand)
DOI: 10.4018/978-1-931777-06-3.ch014

Keywords: Accounting and Finance / Business & Management / Business Science Reference / Enterprise Resource Planning

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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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