Tangible costs
The setting up technology investments requires investments that will support the business framework. Considering this is a technology entity several costs are likely to accrue. One of the cost is technology infrastructure this would include the cost of computer systems, network infrastructure as well as software systems. Also on the same the cost of staff enumerations has to be considered. This entails salaries, insurance plans and allowances.
Intangible costs
Potential intangible costs in technology investments will entail the following areas: due to changes in technology landscape factors such as resistance to change within an organization, organizational restructuring may also add up costs. In the case where new policies and control may crop up, this would greatly impact on costs. In some instances this may come in the form of disruptions in normal work practices as well as down time.
Tangible benefits
The tangible benefits are likely to be experienced as a result of sound investment or the use of technology such as software as well as adoption of efficient policies. Visible benefits in this area may involve cost saving methodologies. Secondly, the reduction in operational error as well as improved operational performance as a result of factors such as training and use of sound systems as also beneficial. In some cases increased flexibility that may emanate from improved planning and control may also be witnessed.
Intangible benefits
Some benefits are also less likely to be quantified and these are those that are not directly visible. In the case of a technology investment such may be the client satisfaction, good work ethics. In the management scenario it may also involve sound decision making, great leadership skills, improved commitment and better management to staff relationship.
Evaluation
For cost benefits analysis to be viable it is required that cost to benefit ratio in both in terms of monetary quantification as well as value be accessed. A good strategy should see to it that the benefits outweigh the costs.
References
Marc J. Schniederjans, J. L. (2010). Information Technology Investment: Decision-Making Methodology. World Scientific.
