Abstract

In 1989 the Department of Defense (DoD) implemented an ambitious information management improvement program known as Corporate Information Management (CIM). The popular press has reported that the Pentagon expects to save 35 billion dollars over five years with the CIM initiative. As part of the CIM initiative, the Director of Defense Information has directed that all DoD investments in automated information systems be evaluated in a Functional Economic Analysis framework. This paper reports on a model that was developed for performing Functional Economic Analysis. The approach is demonstrated with an application to a Contract Payment processing center within the Defense Financial and Accounting Services functional area.

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