Journal of Information Technology Services (한국IT서비스학회지)

Korea Society of IT Services (한국IT서비스학회)
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Economic Analysis on the Small & Medium Business Public e-Procurement Information System Project

중소기업 공공구매 판로지원 종합정보시스템 구축사업의 경제성 분석

  • 정훈 (서울과학기술대학교 IT정책전문대학원, 산업정보시스템전공) ;
  • 안재경 (서울과학기술대학교 글로벌융합산업공학과)
  • Received : 2018.09.12
  • Accepted : 2018.03.21
  • Published : 2018.06.30
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Abstract

This study performed an economic analysis and tested the viability of a public computerization project to create a comprehensive information system for public e-procurement for small and medium-sized businesses (SMBs). The study found that the estimated costs of the project included 4.3 billion won to build the system and 710 million won per year to maintain the system once it is built. The project's estimated total benefits amounted to 6.66 billion won per year, including 5.871 billion won per year in increased convenience for SMBs that use the system, 406 million won per year in benefits for public institutions, and 383 million won per year in benefits for the institution "A" to adopt the system. We used the contingent valuation method (CVM) to estimate the benefits to SMBs, which would be the main participants of the project. The survey found that the SMBs were willing to pay an average fee of 170,136 won. we conducted an economic analysis by applying a 5.5% social discount rate over an analysis period of 10 years and found a benefit-cost ratio of 5.02 and a net present value of 40.201 billion won, which indicated a very high economic viability of the project. The results of this study can be an important reference when deciding whether to pursue computerization projects in the public sector.

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References

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