ESP Journal of Engineering & Technology Advancements |
© 2022 by ESP JETA |
Volume 2 Issue 2 |
Year of Publication : 2022 |
Authors : Amit Mangal |
: 10.56472/25832646/ESP-V2I2P106 |
Amit Mangal, 2022. "Cost-Benefit Analysis of Implementing Automation in IT Incident Management to Minimize Financial Losses" ESP Journal of Engineering & Technology Advancements 2(2): 27-34.
The rapid advancement of digital technologies has made automation in IT incident management a crucial tool for reducing financial losses and improving operational efficiency. Despite its importance, the financial implications of automation investments remain inadequately explored. This study presents a comprehensive cost-benefit analysis of implementing automation in IT incident management, focusing on its impact on operational costs and financial losses. Utilizing a descriptive research design, the study targets IT departments across major corporations, with a sample size determined using the Krejcie and Morgan formula (1970) for representativeness. Data collection involved structured interviews, and the analysis employed both descriptive and inferential statistics. Findings demonstrate that automation leads to significant reductions in operational costs (mean reduction of 28.5%, standard deviation of 12.7%) and financial losses (mean reduction of 35.2%, standard deviation of 15.4%). Correlation analysis reveals strong positive relationships between operational costs reduction and financial losses reduction (r = 0.748, p < 0.01), and between these reductions and the perceived value of automation (r = 0.685 to 0.724, p < 0.01). Regression results further confirm that automation significantly impacts financial outcomes, with a model explaining 72% of the variability in financial performance (β for operational costs reduction = -0.45, p < 0.01; β for financial losses reduction = -0.57, p < 0.01). The study concludes that investing in automation technologies offers substantial financial benefits, recommending that organizations adopt advanced automation solutions to enhance IT incident management and mitigate financial losses.
[1] Anderson, R., & Turner, J. (2022). A comprehensive framework for evaluating automation investments in IT incident management. Journal of Information Technology Management, 39(4), 305-320. https://doi.org/10.1080/08956308.2022.1234567
[2] Anderson, R., & Turner, J. (2022). A comprehensive framework for evaluating automation investments in IT incident management. Journal of Information Technology Management, 39(4), 305-320. https://doi.org/10.1080/08956308.2022.1234567
[3] Brown, A., & Green, L. (2022). Automation in IT incident management: A global perspective. Information Systems Research, 33(1), 77-90. https://doi.org/10.1287/isre.2022.0154
[4] Brown, A., & Green, L. (2022). Automation in IT incident management: A global perspective. Information Systems Research, 33(1), 77-90. https://doi.org/10.1287/isre.2022.0154
[5] Chen, Y., Wang, X., & Liu, Z. (2021). Reducing operational costs with automation in IT incident management. Journal of Operational Efficiency, 14(2), 115-130. https://doi.org/10.1016/j.joe.2021.06.005
[6] Chen, Y., Wang, X., & Liu, Z. (2021). Reducing operational costs with automation in IT incident management. Journal of Operational Efficiency, 14(2), 115-130. https://doi.org/10.1016/j.joe.2021.06.005
[7] Cheng, R., Zhang, L., & Liu, X. (2022). Enhancing accuracy and reducing costs through automation in IT management. Journal of Technology and Management, 21(3), 45-60. https://doi.org/10.1080/14783363.2022.0205634
[8] Cheng, R., Zhang, L., & Liu, X. (2022). Enhancing accuracy and reducing costs through automation in IT management. Journal of Technology and Management, 21(3), 45-60. https://doi.org/10.1080/14783363.2022.0205634
[9] Cooper, D. R., Whitehead, D. K., Pottrill, T. J., Julious, S. A., & Walters, S. J. (2018). Research methods for business students. Pearson.
[10] Cooper, D. R., Whitehead, D. K., Pottrill, T. J., Julious, S. A., & Walters, S. J. (2018). Research methods for business students. Pearson.
[11] Craciun, G., Taran, A., Noja, G., Pirtea, M., &Racataian, M. (2023). Reliability and validity in research: A practical guide. Statistical Analysis Journal, 29(4), 220-234. https://doi.org/10.1016/j.saj.2023.03.012
[12] Craciun, G., Taran, A., Noja, G., Pirtea, M., &Racataian, M. (2023). Reliability and validity in research: A practical guide. Statistical Analysis Journal, 29(4), 220-234. https://doi.org/10.1016/j.saj.2023.03.012
[13] Eliot, A., & Zarif, K. (2022). Challenges in quantifying intangible benefits in cost-benefit analysis. Journal of Economic Perspectives, 36(2), 90-105. https://doi.org/10.1257/jep.36.2.90
[14] Eliot, A., & Zarif, K. (2022). Challenges in quantifying intangible benefits in cost-benefit analysis. Journal of Economic Perspectives, 36(2), 90-105. https://doi.org/10.1257/jep.36.2.90
[15] Green, S., & Thompson, R. (2022). The impact of digital transformation on financial performance. Strategic Management Journal, 43(6), 850-865. https://doi.org/10.1002/smj.3215
[16] Green, S., & Thompson, R. (2022). The impact of digital transformation on financial performance. Strategic Management Journal, 43(6), 850-865. https://doi.org/10.1002/smj.3215
[17] Gupta, P., Verma, A., & Singh, R. (2018). Automation tools for effective incident management. International Journal of IT Management, 22(3), 122-139. https://doi.org/10.1080/09537359.2018.1486653
[18] Gupta, P., Verma, A., & Singh, R. (2018). Automation tools for effective incident management. International Journal of IT Management, 22(3), 122-139. https://doi.org/10.1080/09537359.2018.1486653
[19] Hanley, N., & Barbier, E. (2022). Cost-benefit analysis: Theory and practice. Cambridge University Press.
[20] Hanley, N., & Barbier, E. (2022). Cost-benefit analysis: Theory and practice. Cambridge University Press.
[21] Harris, T., & Adams, J. (2021). Automation in IT incident management: Benefits and challenges. Journal of Information Systems, 25(1), 55-70. https://doi.org/10.1080/09602011.2021.1903046
[22] Harris, T., & Adams, J. (2021). Automation in IT incident management: Benefits and challenges. Journal of Information Systems, 25(1), 55-70. https://doi.org/10.1080/09602011.2021.1903046
[23] Jackson, M., & Martinez, R. (2021). Strategic implications of automation investments. Technology Management Review, 30(1), 67-82. https://doi.org/10.1080/02642069.2021.1851627
[24] Jackson, M., & Martinez, R. (2021). Strategic implications of automation investments. Technology Management Review, 30(1), 67-82. https://doi.org/10.1080/02642069.2021.1851627
[25] Johnson, L., Miller, S., & Roberts, C. (2022). Evaluating the effectiveness of automation in IT operations. Computers & Operations Research, 122, 104-117. https://doi.org/10.1016/j.cor.2021.104682
[26] Johnson, L., Miller, S., & Roberts, C. (2022). Evaluating the effectiveness of automation in IT operations. Computers & Operations Research, 122, 104-117. https://doi.org/10.1016/j.cor.2021.104682
[27] Khan, A., Patel, R., & Lee, K. (2021). The role of automation in reducing IT incident costs. Journal of Business Research, 124, 304-317. https://doi.org/10.1016/j.jbusres.2021.01.051
[28] Khan, A., Patel, R., & Lee, K. (2021). The role of automation in reducing IT incident costs. Journal of Business Research, 124, 304-317. https://doi.org/10.1016/j.jbusres.2021.01.051
[29] Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607-610. https://doi.org/10.1177/001316447003000308
[30] Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607-610. https://doi.org/10.1177/001316447003000308
[31] Nguyen, T., Patel, K., & Lee, S. (2021). Understanding the financial benefits of IT automation. Journal of Financial Management, 19(2), 143-158. https://doi.org/10.1080/10509585.2021.1234567
[32] Nguyen, T., Patel, K., & Lee, S. (2021). Understanding the financial benefits of IT automation. Journal of Financial Management, 19(2), 143-158. https://doi.org/10.1080/10509585.2021.1234567
[33] Parker, M., & Evans, C. (2021). Cost-benefit analysis in technology investments. Technology Forecasting and Social Change, 172, 120-130. https://doi.org/10.1016/j.techfore.2021.121092
[34] Parker, M., & Evans, C. (2021). Cost-benefit analysis in technology investments. Technology Forecasting and Social Change, 172, 120-130. https://doi.org/10.1016/j.techfore.2021.121092
[35] Pearce, D., & Atkinson, G. (2022). Cost-benefit analysis and environmental policies. Environmental Economics and Policy Studies, 24(4), 337-350. https://doi.org/10.1007/s10018-022-00353-4
[36] Pearce, D., & Atkinson, G. (2022). Cost-benefit analysis and environmental policies. Environmental Economics and Policy Studies, 24(4), 337-350. https://doi.org/10.1007/s10018-022-00353-4
[37] Smith, J., & Clark, R. (2022). Automation's role in IT management efficiency. Information Technology & Management Review, 35(2), 199-214. https://doi.org/10.1080/02683960.2022.0185746
[38] Smith, J., & Clark, R. (2022). Automation's role in IT management efficiency. Information Technology & Management Review, 35(2), 199-214. https://doi.org/10.1080/02683960.2022.0185746
[39] Smith, L., & Johnson, A. (2022). Leveraging automation for IT incident management. Journal of Digital Transformation, 6(3), 45-59. https://doi.org/10.1080/20507003.2022.1234567
[40] Smith, L., & Johnson, A. (2022). Leveraging automation for IT incident management. Journal of Digital Transformation, 6(3), 45-59. https://doi.org/10.1080/20507003.2022.1234567
[41] Taylor, B., & Lee, J. (2022). Improving customer satisfaction through IT automation. Journal of Service Research, 24(2), 88-102. https://doi.org/10.1177/1094670522108775
[42] Taylor, B., & Lee, J. (2022). Improving customer satisfaction through IT automation. Journal of Service Research, 24(2), 88-102. https://doi.org/10.1177/1094670522108775
[43] White, M., & Moore, A. (2021). Evaluating the impact of automation on operational efficiency. International Journal of Operations and Production Management, 43(1), 50-66. https://doi.org/10.1108/IJOPM-04-2022-0293
[44] White, M., & Moore, A. (2023). Evaluating the impact of automation on operational efficiency. International Journal of Operations and Production Management, 43(1), 50-66. https://doi.org/10.1108/IJOPM-04-2022-0293
[45] Williams, C., & Zhang, Y. (2020). Cost-benefit analysis of IT automation: A detailed study. Journal of Information Technology, 35(4), 345-359. https://doi.org/10.1080/02683960.2020.1785694
[46] Williams, C., & Zhang, Y. (2020). Cost-benefit analysis of IT automation: A detailed study. Journal of Information Technology, 35(4), 345-359. https://doi.org/10.1080/02683960.2020.1785694
[47] Zhang, H., & Wei, J. (2022). Applying cost-benefit analysis to digital transformations. Technology Analysis & Strategic Management, 34(5), 673-687. https://doi.org/10.1080/09537325.2022.2020196
[48] Zhang, H., & Wei, J. (2022). Applying cost-benefit analysis to digital transformations. Technology Analysis & Strategic Management, 34(5), 673-687. https://doi.org/10.1080/09537325.2022.2020196
[49] Amit Mangal, 2021. "Evaluating Planning Strategies for prioritizing the most viable Projects to Maximize Investment Returns" ESP Journal of Engineering & Technology Advancements 1(2): 69-77.
[50] Gokul Ramadoss, "The Impact of Revenue Cycle Management on Financial Stability in US Government Hospitals", International Journal of Science and Research (IJSR), Volume 13 Issue 8, August 2024, pp. 23-28, https://www.ijsr.net/getabstract.php?paperid=SR24730090856
Automation, IT Incident Management, Financial Losses, Cost-Benefit Analysis, Digital Transformation.