Executive Development Programme in Information Systems Cost Benefit Analysis

This course is designed for senior executives and managers responsible for strategic decision-making in information systems. Participants will gain a deep understanding of cost-benefit analysis techniques essential for evaluating and justifying investments in IT projects.

They will learn to apply quantitative and qualitative methods to assess the financial and non-financial impacts of information systems, enabling them to make informed, data-driven decisions that drive organizational value.

1. 1. Introduction to Cost-Benefit Analysis (CBA): Learners will study the basic principles of CBA, including its definition, importance in decision-making, and the foundational concepts such as net present value (NPV) and internal rate of return (IRR). They will gain practical skills in identifying, quantifying, and evaluating project costs and benefits.
2. 2. Cost Identification and Measurement: This module covers techniques for identifying and measuring various costs associated with information systems projects, including direct and indirect costs, opportunity costs, and intangible costs. Learners will learn how to gather accurate cost data for analysis.
3. 3. Benefit Identification and Quantification: Learners will explore methods for identifying and quantifying the benefits of information systems projects, focusing on efficiency gains, revenue increases, and cost savings. Practical skills include using financial models and performance metrics to measure benefits.
4. 4. Risk Analysis and Mitigation in CBA: This module delves into the identification, assessment, and mitigation of risks associated with information systems projects. Learners will study risk management strategies and learn how to incorporate risk into CBA calculations.
5. 5. Comparative Analysis and Decision-Making: Learners will study techniques for comparing different project alternatives and making informed decisions based on CBA results. Practical skills include using decision matrices and weighing trade-offs between competing projects.
6. 6. Advanced Topics in CBA: This module covers advanced topics such as sensitivity analysis, scenario analysis, and Monte Carlo simulations. Learners will gain skills in analyzing the robustness of CBA results under different scenarios and conditions.
7. 7. Legal and Ethical Considerations in CBA: This module addresses the legal and ethical implications of conducting CBA in the context of information systems projects. Learners will understand the importance of compliance and ethical considerations in cost-benefit analyses.
8. 8. Integration of CBA in Strategic Planning: Learners will learn how to integrate CBA into the broader strategic planning process of an organization. Practical skills include using CBA outputs to inform strategic decisions and long-term planning.
9. 9. Case Studies and Practical Applications: This module provides learners with the opportunity to apply their knowledge through case studies and real-world scenarios. Practical skills include analyzing complex projects, working with large datasets, and presenting CBA findings to stakeholders.
10. 10. Continuous Improvement and Best Practices: Learners will explore best practices and continuous improvement strategies in CBA. Practical skills include staying current with industry trends, improving the accuracy of CBA methods, and enhancing the communication of CBA results to decision-makers.