Question

Provide the some of the most important tangible and intangible costs and benefits to implementing a GIS at a department store chain like Sears Roebuck.

Answer 1

The utilization of cost and benefit can well explain the implementation of GIS in departmental stores like Starbucks. Tangible and intangible costs and benefits are effective while implementing GIS. Costs include

• Cost of hardware
• Cost of software
• Map transformation
• ‘Digitalization of data format
• Staff training.

Hence benefits associated with this technological innovativeness are as follows:

• Enhancement of work efficiency
• Enhancement of effectiveness
• Improvement in economic value

Departmental stores attempt to justify GIS implementation because of its high cost and enduring benefits. Tangible costs associated with the implementation of the GIS system are as follows:

• The purchase cost of hardware
• The purchase cost of software
• Suppliers cost
• Cost of hiring additional organizational staffs
• Training cost
• Digitalization cost

These tangible costs are beneficial because these arequantifiable and can be evaluated in the free market. For example- Starbucks manages its tangible costs to enforce benefits like smooth workflow, proper consumer service and service-oriented approach with the implementation of the GIS system.

Intangible benefitsof GIS system is not wholly beneficial and effective for business organizations. GIS improves the knowledge management process and ensures technical advancements. However, intangible benefits of GIS system are as follows:

• Improved morale can reduce staff turnover
• Reduces cost for searching and training
• Creates workplace discrimination in departmental stores. For example-Implementation of GIS has highlighted contributions of knowledgeable staffs in Starbucks. However, it has created discrimination between knowledgeable staffs and slow workers in various stores of Starbucks.

Thus, a tangible and intangible cost and benefit analysis of GIS implementation have helped business organizations to differentiate beneficial and non-beneficial factors of implementing GIS.