TA3: Cost Analysis

In this second section of the Team Project, please present a comprehensive cost analysis of the system you are investigating. For example, if you are investigating a product by SAP, please provide a clear, concise, and comprehensive analysis (3-5 well-written paragraphs) of

1. The variables costs of buying, leasing, or subscribing to the system (based on the firm's assumed needs). Make sure to estimate how much it may cost to implement and support the system. (5 points)
2. The fixed costs of buying, leasing, or subscribing to the system (based on the firm's assumed needs). Make sure to estimate how much it may cost to implement and support the system. (5 points)
3. An overall synthesis of the upfront costs for implementing the system, and the recurring costs for maintaining and supporting the system. A brief discussion of the overall cost within the firm's financial situation should be included as well (5 points)

Each of these analyses must be accompanied by graphs or tables that visually communicate your data in an effective manner (5 points) You should use relevant sections of the HBR Return on Investment (ROI) tools as much as possible. These tools are available from the Chatham library here. (Note, if the link does not work properly, please contact Chatham library for assistance and notify the professor.)

For a template or idea inspirations, take a look at this ERP ROI Calculator by Panorama Consulting Solutions. You can design your own analyses using this calculator as a starting point.

Please focus exclusively on the COST ANALYSIS aspect of your overall ROI analysis in this section. You will focus on the VALUE ASSESSMENT aspect of the ROI equation in the next section. You will then put these two parts together to complete your ROI analysis in the final project report.

Your writing should incorporate materials from credible sources, including your textbooks (e.g., Austin chapter on cost of IT, Gallaugher chapter on Software and Total Cost of Ownership), EIA materials, and the IT-related newsletters recommended by the instructor. Please cite at least one source from the textbooks, and one source from the IT-related newsletters, and one source from EIA materials. (7 points)

You must include at least one image (2 points) and one URL link (1 point).