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    Cost Benefits Analysis for New Systems

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    Assume that the benefits of a new system were to decrease the average amount of time a customer had to wait when they called customer service by 15 seconds. Can this be quantified and used in a cost benefit analysis? If so how? If not why not?

    One of the benefits made in some government IT projects is that the new system will save an average of five lives a year. For example a new IT system for 911 will reduce average time to accidents by 20 seconds resulting in five less deaths each year. Can this be quantified and used in a cost benefit analysis? If so how? If not why not?

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    Solution Preview

    1. The 15 second reduction is Average Handle Time (AHT). This can easily be quantified and used in cost benefit analysis. One of the ways that could be done is to estimate the total call volume in a given year. This means estimate the total customer calls in a given year (this can be accomplished using prior ...

    Solution Summary

    A cost benefit analysis for new systems are examined. Examples of a new IT system for 911 to reduce average time to accidents by 20 seconds resulting in five less death each year.

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