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Office Information Systems Cost Justification

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2 Author(s)
Sassone, P.G. ; College of Management, Georgia Tech, Atlanta, Georgia 30332 ; Schwartz, A.Perry

The purpose of this paper is to present a new methodology for the cost justification of office information systems in engineering environments [1]. The methodology is called the hedonic wage model. It is based on the fact that the allocation of labor resources in an organization tends to conform to certain logical economic criteria. These criteria, along with information on the costs of labor and on how workers spend their time, permit inferences about the organizational values of key activities. The value of an information system can be estimated based on its contribution to the key activities.

Published in:

Aerospace and Electronic Systems Magazine, IEEE  (Volume:1 ,  Issue: 8 )

Date of Publication:

Aug. 1986

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