• Information Systems Review
• /
• v.10 no.3
• /
• pp.133-153
• /
• 2008

Understanding of the length of time required to realize the return on the investment of informatization is important for policy makers and decision makers of information system adoption. Previous researchers, however, assessed this issue with the performance measurement approach that was primarily based on static point of view. However, the static analysis on the outcome of the informatization investment is limited in measuring the priori and ex ante effects of the informatization implementation on temporal basis. This study present a methodology to capture the outcome of the informatization investment on dynamic basis. This assessment was performed based on an e-government project in Korea, called "Industry Human Resource Project." Particularly, the study addressed how long it takes to obtain the benefit of WorkNet System, which was part of this Korean e-government project. We proposed various approaches to illustrate the importance and temporal effect of the WorkNet System by analyzing DB data, time reduction of WorkNet business processes and return of investment of IT.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.40 no.1
• /
• pp.50-56
• /
• 2017

The IRR (internal rate of return) is often used by investors for the evaluation of engineering projects. Unfortunately, it is widely known that it has serial flaws. Also, External rate of returns (ERRs) such as ARR (Average Rate of Return) or MIRR (MIRR, Modified Internal Rate of Return) do not differentiate between the real investment and the expenditure. The PRR (Productive rate of return) is faithful to the conception of the return on investment. The PRR uses the effective investment instead of the initial investment. In this paper, we examined two cases of the engineering project. the one is a traditional engineering project with financing activity, another is the project with R&D. Although the IRR has only one value, it overestimates or underestimate profitabilities of Engineering Projects. The ARR and the MARR assume that a returned cash reinvest other projects or assets instead of the project currently executing. Thus they are only one value of a project's profitability, unlike the IRR. But the ARR does not classify into the effective investment and non-investment expenditure. It only accepts an initial expenditure as for an investment. The MIRR also fails to classify into the investment and the expenditure. It has an error of making a loss down as the investment. The IRR works as efficiently as a NPW (Net Present Worth). It clearly expresses a rate of return in respect of an investment in an engineering project with a loan. And it shows its ability in an engineering project with a R&D investment.

• Journal of the Korean Society of Industry Convergence
• /
• v.25 no.6_3
• /
• pp.1183-1190
• /
• 2022

Recently, the Ministry of Strategy and Finance announced a plan to reduce the proportion of economic evaluation in non-metropolitan areas and strengthen balanced development evaluation through the reorganization of the preliminary feasibility study system. In addition, the social value of the quality of life, such as job, environment, and safety, which may be affected by the implementation of transportation facility investment projects, was reflected as the main item of policy evaluation. In this study, the ripple effect of the project in terms of social value was reviewed for the Gangil-Chuncheon. The effect of highway opening was investigated by reviewing the feasibility report, post-evaluation report, and statistical indicators. Recently, the Gangil-Chuncheon highway is getting used by around 110,000 people per day. The number of tourists in Chuncheon rapidly has increased from 5 million a year to more than 11 million now. In addition, it was confirmed to produce effects such as population migration, net inflow and land price increase, improvement of living convenience, and expansion of emergency medical care. Although this ripple effect was influenced by various socio-economic factors as well as the opening of the highway, it is clear that it is difficult to occur without the opening of the highway. It is judged that the evaluation of indirect benefits and social values due to the opening of the highway can be quantified through continuous research and data construction. Post-evaluation of construction works, including project efficiency evaluation and ripple effect evaluation, is performed for construction works with a construction cost of more than 50 billion won. In the future, we will continuously improve the evaluation system in order to evaluate the indirect benefits and social values of public investment projects.

• Information Systems Review
• /
• v.6 no.1
• /
• pp.85-102
• /
• 2004

This article provides a practical organizational IT ROI evaluation methodology which had been developed by Samsung Group. In order to manage huge IT investment and ROI systematically, firms should establish a management system which can measure various types of IT expenditures, tangible and intangible outcomes of hundreds of KPIs, etc. An episode about the development process and some distinctive features of the methodology were summarized. Finally, we added a real evaluation case of one Samsung affiliate company.

• The Transactions of The Korean Institute of Electrical Engineers
• /
• v.62 no.4
• /
• pp.467-473
• /
• 2013

The addition of disconnect switches to a distribution feeder or the replacement of the manual switches with the automatic switches do, in general, increase reliability by decreasing the duration of the outage of many to the customers on the feeder and reducing the outage section. However, the improvement of reliability in power distribution system causes an increase of the investment cost, for example, replacement costs, labor costs, and so on. For this reason - the balance between investment and reliability improvement - many studies about the appropriate level of investment have been conducted. In this paper, we suggest the algorithm for determining the reasonable switch automation rate in the power distribution system. We evaluate the customer interruption cost and reliability for several cases - these cases relate with the switch automation rate - in the domestic metropolitan power distribution system, estimate the effectiveness of changing the manual switch to automatic switch quantitatively. These results can help the determining on the disconnect switch's automation rate.

• Korean Management Science Review
• /
• v.12 no.1
• /
• pp.157-173
• /
• 1995

Hydro-electric power generation from multi-purpose dams has been playing important roles in the electric power supply network in Korea. Although the total share of hydro power in national electricity supply now becomes very small, the peak-shaving and frequency control capability of hydro power helps the power company enormously in maintaining the quality of power. But since the company that builds and operates the multi-purpose dams in Korea has to sell all the electricity produced to the monopolistic utility, there have been various problems in justifying the investment, designing pricing mechanism, and controlling operations of the power plants. In addition, economic evaluation of the hydro power has been distorted by a variety of reasons and hence it has been very difficult to encourage effective development and utilization of national water resources. To make the problem worse, both parties are public companies with X-inefficiency problems. Thus, changing environment requires to reengineer the system that governs hydro power generation. We address the problems of Korean hydro-electric power generation system in four areas: the investment justification process, the operations decison right of the hydro power plants, the pricing of the purchased-power, and the negotiation of contract revision. Then we propose improvement directions of new hydro-electric power system in view of static and dynamic efficiency, X-inefficiency and equity.

• Journal of the Korean Data Analysis Society
• /
• v.20 no.6
• /
• pp.2993-3002
• /
• 2018

This case study introduces the process of developing the technology rating evaluation model for investment. The technology evaluation rating model for investment is a project that the Financial Services Commission and the Ministry of Commerce, Industry and Energy collaborated to expand the scope of technology finance from loan to investment. The technology evaluation model for investment was developed with the aim of predicting high growth companies. The model consists of a statistical model and an expert model. Here, statistical models were modeled by using logistic regression analysis. Expert models gathered opinions of experts and identified the weight of each evaluation item and set the model. The rating system of the model is composed of 10 grades. The distribution of the model was consistent with KTRS grade distribution. Interestingly, the emphasis is on technology and marketability. In the technology valuation grade model for the goddess, there is a considerable difference from the emphasis on managerial competence or business performance.

• The Journal of the Korea Contents Association
• /
• v.22 no.10
• /
• pp.83-92
• /
• 2022

The purpose of this research is to analyze the European paradigm of health investment and its implication. Conventional content analysis of WHO/EU(/EC)/European countries' policy data, and articles shows that the European paradigm of health investment is consist of the basic and extended models, twelve life-course-based health investment policies, and SROI evaluation method. The analyses and discussion points provide policy implications for making virtuous cycle of Korean sustainable healthcare system with economic development in the post Covid-19 era.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.42 no.1
• /
• pp.137-142
• /
• 2019

There are two methods for evaluating two or more mutually exclusive projects. One is a total investment approach and the other is an incremental investment approach. The former can rank projects by the criterion of the net present value, but the latter can't do it. An incremental investment approach is only possible when all pairwise alternatives are compared. Thus an incremental investment approach is superior in ranking them over an incremental investment approach. To do so, a principle of comparison must be established. Comparisons of profitability are reasonable when operating the same amount of investment over the same period of time. One principle is that all projects are invested in the largest of the projects. Another principle is that all projects are invested during the longest project life of the projects. In this paper, even if the principle is followed, it will be shown that the external rate of return fails to rank them. However, the productive rate of return criterion would prove to be able to rank them like the net present value standard, provided that the principle of comparison is kept. In addition, rate of returns can be assessed so that all mutually exclusive projects can be compared at once, such as on the criterion of the net present value. That is, it can be also compared with many other returns, such as the profit rates on financial investments or real investments.

• Journal of the Korea Society of Computer and Information
• /
• v.14 no.6
• /
• pp.107-116
• /
• 2009

Even though there are growing numbers of IT utilization in many organizations, they are required to use only constrained amount of resources due to the decrease in IT Investment, following economic recession. Besides, the CEOs in those organizations are required to assess how IT Investment, which has been gradually increased during the industrial growth, affects their organizational performances. Thus, they began to enforce IT governance so as to measure IT efficiency and minimize business risks. As a result, they improved the decision making process of IT Investment, enforced IT value assessment, and established the IT Investment-performance evaluation process as well. In this article, I aimed to make it clear how IT Investment affects the IT Performance by analyzing the effects of the factors constituting the IT Investment managing system and the Process Maturity on the User Satisfaction. This analysis can suggest a practical IT Investment-performance model, which can increase organizational performances.