A Framework for Using Cost-Benefit Analysis in Making the Case for Software Upgrade

Abstract

This paper proposes using an economical model in making the case for software upgrade at or-ganizations in general and at educational institutions in particular. Cost-benefit Analysis (CBA) is a model widely used in economics by various organizations to select among alternatives and to justify making certain investments. Spending money or investing in software upgrade costs may need to be justified in some cases. In these cases, it would be helpful to use a framework such as the CBA to justify and make the case for investing in software upgrade. The paper intends to help with determining the feasibility (or lack of it) of paying for software upgrade by introducing this framework. The main contribution of this paper lie in the introduction of a framework that can be used by academic institutions when tackling a decision or contemplating the purchase of software up-grades. Such a framework can then be systematically applied to justify and make the case for or against purchasing software upgrade. A secondary contribution for the paper is to suggest meth-ods for converting factors influencing software upgrades into monetary values so to be able to plug values in the proposed framework. To achieve both objectives, the paper articulates the fac-tors that stand for and against the purchase of technology upgrade. It then suggests ways convert these factors into monetary values. The final contribution of the paper is the introduction of the framework that is developed along the CBA model so it can be used when discussing investing in software upgrade.