CIMA E1 Syllabus E4. IT - Costs and Benefits of Information Systems - Notes ^{5 / 7}

The introduction of a new Information System (IS) is often a significant cost to the organisation.

The costs of the new IS can be split into 2 areas.

Initial / Set up / Development costs

Measuring and analysing the existing system
Design and development of the new bespoke software
Testing of the new system
Training users in key features of the system
Financing costs

Running costs

Labour costs to run the system
Replacement parts
Service support
Licenses
Updates
Securities and firewalls

Some benefits of a new IS are:

Increased speed
Accuracy
Volume handled
User friendly
Reduced costs