Original Research

A priority criterion for serial computer system development projects

J. Mende
South African Journal of Business Management | Vol 16, No 2 | a1074 | DOI: https://doi.org/10.4102/sajbm.v16i2.1074 | © 2018 J. Mende | This work is licensed under CC Attribution 4.0
Submitted: 23 October 2018 | Published: 30 June 1985

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J. Mende, Department of Accounting, University of the Witwatersrand, South Africa

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Abstract

When a firm's systems department has insufficient resources to carry out all requested development projects immediately, managers serving on the Data Processing Steering Committee need to decide which project should be completed first, second, third, etc. This can be done by ranking the projects in sequence of a 'priority criterion'. In the past net present value (NPV) was used for this purpose. However, in a small systems department, where projects are carried out in series, NPV is inappropriate. A more accurate measure of priority is a project's 'net worth' divided by its duration.

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