Final answer:
The benefits of IT initiatives should be compared against the current IT process inputs, the projected revenues and costs without the implementation, and the non-financial aspects of the projects. Cost/benefit analysis includes both financial measures and non-financial gains that might be less tangible but equally important.
Step-by-step explanation:
Benefits of IT initiatives should be measured in comparison to a variety of factors. A cost/benefit analysis is used where marginal costs and marginal benefits are weighed to facilitate decision-making. This process is not only about what is sacrificed, such as money and effort, but also about what is gained, such as improvements in time and experience. Specifically, benefits should be measured against current inputs of the existing IT processes, revenues and costs that will occur without implementing the initiative,
and non-financial aspects of the project. Non-financial aspects might include customer satisfaction, improvement in production technology, and enhanced systems management, which are less tangible but can deliver significant value to a business. Moreover, other measures like fixed cost, marginal cost, average total cost, and average variable cost provide their own insights which can be crucial in evaluating the efficiency and effectiveness of IT initiatives.