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• W2597173650 abstract "INTRODUCTION This article is based on the author's experience from decades of practice implementing and using GIS. In contrast to the other articles in this issue, the author limits his account to four references. The National States Geographic Information Council (NSGIC 20131) summary document describes the importance and the methodologies of Return on Investment (ROI) and Cost Benefit Analysis (CBA) for assessing and justifying the considerable investment necessary to implement GIS technology and to maintain its database and operation. It includes characterizations of eight studies, with links to the actual documents. The variety of methods indicates that we are far from a standardized approach. In addition, this author suggests an early URISA Journal article (Gillespie 20 002) that introduced GIS audiences to formal approaches of calculating GIS benefits based on the complexity of inputs, analysis, and outputs. Economists view the analysis quite differently from GIS managers. While recipients of such studies usually focus mainly on the bottom line, e.g., that the investment is worthwhile and how long it will take until the benefits accrue, it is the contention of this author that the greatest benefit is derived from the fact that a rigorous analysis has been conducted rather than what particular method has been used to arrive at the study result. In the author's experience, most client agencies had rudimentary GIS in one or two departmental operations and wish to explore the feasibility and benefit of expanding GIS usage throughout the enterprise. Similarly, the four types of benefits estimated from using GIS technology (increased efficiency, cost avoidance, increased revenues, and better decision making) can be applied to many other agencies (larger organizations with mature GIS departments will benefit from the more formal approach outlined in Babinski et al.'s article in this issue of the URISA Journal). The approach described here obtains consensual agreement from the line managers who are closest to GIS results and have the most direct feel for their work groups' costs and potential benefit from GIS usage. In other words, experienced GIS professionals can explain to line managers what GIS can do, and the managers can assess what value such GIS products or services would have to their work groups' operations. In the GIS implementation projects from which this paper's analysis derives, the actual implementation costs were within 5 percent below the estimates. The actual benefits took longer than expected to accrue, but when they did, there was no doubt that the agency could not provide the level and kinds of service to its constituents without GIS. Please note that the cost amounts were estimated for specific clients at specific points in time. Costs and technology change rapidly. The numbers used in the following tables are for illustration only. WHY SHOULD WE ANALYZE COSTS AND BENEFITS AND CALCULATE A RETURN ON INVESTMENT (ROI)? This section heading is obviously rhetorical. But in general terms, we are trying to determine 1. The answer to the question: OK, now that I know how much it's going to cost, is it worth the money (and time and effort)? 2. Even if it is worth the investment, How do the benefits compare with other potential projects? 3. Even if it is worth the investment, When will the benefits show up? 4. An optimal allocation of the organization's limited resources. 5. A justification for budgetary allocation of GIS operations. This empirical approach builds a computational model for calculating the costs of maintaining or upgrading an organization's GIS technology and the financial benefits to the organization from each member's, and each department's, use of specific GIS applications that fulfill, promote, and enhance its duties. The net return (benefits minus costs) is calculated for a series of years to conclude what the ROI will be over time. …" @default.
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• W2597173650 date "2015-01-01" @default.
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• W2597173650 title "A Personal Account of Guidelines for Estimating GIS Return on Investment" @default.
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