Objectives: Introduction Over View of System Analysis and Design



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5.6 Savings versus Cost Advantages

5.7 Select Evaluation Method

5.8 Interpret Results of the Analysis and Final Action

5.9 The System Proposal

5.10 Summary
5.11
Questions

5.0 Objectives
• What is involved in data analysis
• What are cost and benefit categories
• How to identify and classify cost and benefits
• What are various evaluation methods for cost/benefit analysis
Lesson No 5 Lesson Name : Cost/Benefit Analysis
Author : Dr. Jawahar Vetter: Prof. Dharminder Kumar


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5.1 Introduction
Each problem has generally more than one solution. Each such approach has costs
& benefits that are compared with those of other approaches before a final recommendation is made. The result is a project proposal. The findings of the analysis are summarized and the design is recommended.
5.2 Data Analysis Data analysis is a prerequisite to cost benefit analysis. System investigation and data gathering lead to an assessment of current findings. From the analysis, the system deign requirements are identified, which could be
1. Better customer service.
2. Faster information retrieval
3. Quicker reports.
4. Less time consuming.
5. Accuracy.
6. Reduce data redundancy.
7. Improved staff efficiency.
8. Lower processing
& operating costs.
To achieve these design objectives, several alternatives, must be evaluated, there is seldom just one alternative. The analyst selects those that are feasible economically, technically and operationally. Each approach has its benefits and drawbacks. An analysis of the costs & benefits of each alternative guides the selection process.

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