1.1.
4 Costs
Costs of information systems include:
Pre-implementation/development costs analysing current business processes and how they will
be automated in a new system.
Initial set-up costs - hardware, software licensing (e.g. based on the number of users) and
installation costs.
Data conversion of historical information (e.g. from paper documents and spreadsheets).
Staff and user training and IT support.
Modifications and system upgrades.
Communication charges (e.g. for internet access).
1.1.5 Benefits
The main benefit of an information system is the ability to provide users with the information they
need to do their work efficiently. Other benefits will depend on the specifics of the information
provided. For example:
Strategic information provides strategic management with an overview of the entire business.
The ability to extract customised information saves time and clerical expense. Many business
decisions can be delegated to a lower level of the business.
A system is more efficient because data is easier to use. The same data may be presented in
customised formats (e.g. lists, tables, graphs and charts) for different users (see s.4).
Information provided in real-time can drive improvements (e.g. in meeting customers needs).
