Measuring the cost benefit analysis of managing IT in your firm

Technology has led almost all businesses to deal on the
use of IT.  Business organizations have put a lot of its
investments in IT without considering the benefits that
such will produce to the organization’s productivity. 
Cost involved in the procurement of IT equipment is
very material that management should give attention
on how IT should be managed.  The maintenance of
IT can also be costly.  It covers a large portion of
the organization’s budget.  In view of these senior
executives viewed information systems as one to
generate profit for as long as cost is incurred. 
 
In the management of IT costs and benefit,
management should be able to identify excessive IT
expenditure and how to control it.  It is being able
to find the benefits and measure what IT can
provide the organization.  It would be appropriate
to conduct a survey as an approach to measure
benefit.  The measurement of IT cost and benefit
should enable management to develop alternative
strategies to optimize efficiency and effectiveness. 
Management should be able to categorize IT
costs and benefits.  They should have at hand
strategies that involve major cost reduction. 
These includes the use of appropriate technology,
the advantages and disadvantages of downsizing,
upsizing and rightsizing, identify opportunities and
how to manage a major outsourcing should it be
opted.

Managers need to evaluate the success of IT in
the firm.   Managers do have responsibility for
either minimizing IT costs or maximizing IT
benefits.