Question

question 7&8 please

Case Study 189 6. A new inventory management system for ABC Com ventory management system for ABC Company could be developed at a cost of $260,000. The estimated net operating costs and estimated net benefits over six years of operation would be Year Estimated Net Operating Costs Estimated Net Benefits $260,000 $0 7,000 42,000 9,400 78,000 11,000 82,000 14,000 115,000 15,000 120,000 25,000 140,000 AN a. What would the payback period be for this investment? Would it be a good or bad investment? Why? b. What is the ROI for this investment? c. Assuming a 15% discount rate, what is this investment's NPV? 7. Compare and contrast the IT scorecard and dashboard approaches. Which, if either, would be most useful to you as a general manager? Please explain. 8. TCO is one way to account for costs associated with a specific infrastructure. This method does not include additional costs such as disposal costs the costs to dispose of the system when it is no longer of use. What other additional costs might be of importance in making total cost calculations?

Answer 1

Answer:-

Q 7)

Dashboards are used in managing operations of the company whereas the scorecard is used to plan and manage strategy for the company.

The dashboards are generally used as an Business Intelligence tool which helps to visualize the data that is available and is a way to measure how the company is performing in certain parameters at a particular time and the trends or patterns in certain areas. For illustration one can track the efficiency of the production in a manufacturing company. The other examples is of a call centre where one can keep a track of inboud and outbound call in the particular time in shift or day.

IT scorecard on the other hand helps in providing the different strategies and processes to improve the business of the company. This is used by IT technicians to maintain and continuously tune system performance to deliver high output that is possible. It is used to track the company's performance through certain specific performance measures which will help in improving the business. The strategy can be planned and revised as per needs after tracking certain parameters. In some cases several KPIs ( key performance indicators) are used to measure the performance like utilization rate, revenue per employee and billing per employee etc to judge the performance of a company.

Q 8)

Total cost of ownership (TCO) helps in measuring the direct and indirect costs of a product. TCO in general includes costs of Acquisition costs, Operating costs and Personnel costs. These costs in IT services includes several costs like set up of new software, cost of installation, costs incurred in training of employees, costs for support of project, up gradation of software and transition costs, security costs and disaster management costs etc. The TCO is also important for evaluating the technology costs.