MBA INFORMATION MANAGEMENT THESIS RESEARCH PROJECT                         

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What cost evaluation -situation described the best your business decision for a new DCS system?

Select a priority 1 = first choice and 8 is last choice.

Item

Description

Priority 1-8

Purchase cost

 The price that the Company has to pay to the vendor

Initial cost

Initial costs include customization and consulting, education and training, managing the implementation of the product into the business, hardware, networking, communications and software (comprising the application package, database, systems software, network management and other software needed to run the product). Users also need to gain an appreciation for the process changes that must occur up front to make the system work.

 

Ongoing costs

Ongoing costs include custom enhancements, education and training, maintenance payments, services and upgrades.

 

Initial cost and ongoing costs for a period of 1 years

Initial costs include customization and consulting, education and training, managing the implementation of the product into the business, hardware, networking, communications and software (comprising the application package, database, systems software, network management and other software needed to run the product). Users also need to gain an appreciation for the process changes that must occur up front to make the system work and the ongoing costs include custom enhancements, education and training, maintenance payments, services and upgrades for one year.

 

Initial cost and ongoing costs for a period of 3 years

See above for tree years.

 

Initial cost and ongoing costs for a period of 5 years

See above for five years.

 

Initial cost and ongoing costs for a period more than 5 years

See above for than five years.

 

Exit cost or switching cost

Exit cost or switching cost are the cost that the company has to make when it switch to a newer technology.  Functionality is possible locked into proprietary file formats, proprietary applications and a propriety programming environment, all of which create big barriers to exit.

 

 

Remarks

 

 

Willem D. Hazenberg.
Copyright © 2006 Willem Hazenberg Newport International University. All rights reserved.
Revised: 14-jun-2007 16:08:08

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