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Feasibility study question 4

Questions & Answers about The planning phase - Feasibility study question 4

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- Module: The planning phase
- Topic: Feasibility study question 4

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  • Rajendra Kumar Dutta India Can the system development costs and ongoing costs be justified on the improvements it will deliver?
    2014-04-05 19:04:08

    • Rajendra Kumar Dutta India At this point in the feasibility study, the costs associated with the proposed system will be clearer. The costs will be divided into two categories - establishment costs and ongoing costs. Establishment costs are those associated with the actual creation of the system. This would include all development costs, hardware purchases and the like. The establishment costs are one off costs and will not be repeated during the life of the system. Ongoing costs are the costs that will be faced each year in running the system. It includes the human resource costs, system consumables costs and the like. The ongoing costs must be low enough to justify the development of the system. That is, there is no point developing a new system to perform a job if the current system does it cheaper - unless there is some overwhelming need for change. The establishment costs will be incurred in the initial setting up of the system, however they will usually be viewed over the anticipated life of that system.
      2014-04-05 19:04:29
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