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Explain the following: The difference between tangible benefits and intangible benefits for justifying IT investment in...

Explain the following: The difference between tangible benefits and intangible benefits for justifying IT investment in an organization.

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Answer #1

Tangible benefits: these are those benefits than can be measured in terms of monetary.

Intangible benefits: These are the opposite of tangible benefits. These have no relation to monetary.

Tangible benefits:

  • Improvement in productivity: For example, IT investments in the organization can increase productivity. It is easy to manage and monitor everything over the network
  • No paper: there could be a reduction in paper and postage because everything is available on your system
  • No worry about Inventory: Inventory reduction is the major benefits of IT
  • automation: Because of IT, there would be automation in ordering and payment which reduces time and increase productivity

Intangible benefits:

  • Transparency: an increase in transparency is intangible benefit of IT
  • Customer Review: Customer response can be improved using IT.
  • Accuracy; Easy, fast and accurate calculation of data for the future decision of the organization
  • Utilization: resource utilization can be increased by the IT
  • Time: Reduction in time and efforts
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