Download Information System Costs

Information System
Costs
MGS-3040*03
Learning Aid Type
Text Pages 24-25
Michael Capko, Garrett Gloss,
Martine Philemon, Michael Talty
The Cost of Information Systems
Part (a)

Are people the most expensive component of
an information system?

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Cost of People
 Salary
 Training
Intangibles
 There is no perfect information system.
 It is up to humans to update and maintain these
systems
Other components are a one-time fee
Software and hardware updates
Poorly Developed Systems
Part (b)

Which component picks up the slack
when the hardware and software
programs do not work correctly?

People


Time, Money, Not completing other work
Procedures

Must be changed if the system is operating
poorly
The Cost of a Poorly Designed System
Part (b)

Direct Money Costs


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More spent on a new system
Training
Time lost using the old, ineffective system
Intangible Costs


Lack of knowledge
Inaccurate information
Involvement in the System
Part (c)

Being involved in requirements and
other aspects of system development


Having a part in all planning, development,
training, and upkeep of the system.
Analyze to see if the system is working.

If it is not, how can we fix it?
The Biggest Loser
Part (c)

In the end, the managers, owners, and
anyone else responsible for the system
and also anyone invested in the
business will pay for developing and
using a bad system.

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Developing a New System
Employee Time/Training
Improperly utilizing employee time
Direct loss of revenue from customers
Worth of Its Cost
In the end, it must be determined that
the overall value of an information
system outweighs the overall cost.