In the first year or years the costs tend to outweigh the benefits. The up-front outlays in planning, system setup, data automation, application development, staffing, and training do not produce immediate benefits. Typically benefits begin to accrue after the second year, and then can surpass the yearly costs on a continual basis. There are too many uncertainties if the planning horizon is extended too far into the future. Hardware and software advances are expected to occur, but the impacts of those advances on the costs and benefits are just too uncertain.
Experience shows that a six-year planning horizon is reasonable.
The resulting estimate takes all monetary costs into account, based on objective estimates. Select the GIS alternative which offers the best value to the customer. The components are explained in the next section. Understand the relevant cost and benefit factors. Make up the balance sheets for each GIS alternative.