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Using cost benefit analysis for enterprise resource planning project evaluation: a case for including intangibles

The paper demonstrates how cost benefit analysis can be applied to large-scale ERP projects, and that these methods can incorporate intangible benefits, e.g., user satisfaction. Detailed information on the business case utilized by a large computer manufacturer in the decision to implement the SAP system R/3 is presented. Techniques that demonstrate how intangibles may be included in the standard cost benefit analyses are presented. The paper concludes with a discussion on the state of valuing ERP projects and questions to be answered in the future.