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Remaining at the current status will likely cost $53,230 each year while by implementing the new system, the corporate will save half of this amount. Improving the current system (software and hardware) will cost $35,000.
A thorough analysis tells us the needs of this company, whats wrong with the current system, potential problems toward implementation and costs. The recommendation of this paper is to conduct a thorough analysis of the situation, build budgets and timelines that reflect realities, understand that employees are going to be a little skeptical (so spend time and money on training) and also understand there will be a learning curve.
Corporate House needs to implement this enterprise system to solve the stated problems. Doing so will allow for unlimited growth and if the improved information, reporting and efficiencies allow them to after accounting for implementation costs.
Information systems, in theory, are geared toward helping improve productivity by improving the flow of information. But when systems become obsolete or a company grows or both, the information systems can turn from an advantage into a liability. Employees find they must work around the system, rather than work with the system.
What is the best step when an information system no longer is able to meet the needs of the organization? Should a company simply invest in patches in the current system and do business as usual? Or would a new system be called for? There are certainly advantages and disadvantages to both of these processes. But to make a rational decision, a company needs to have an understanding of where it currently is with the system, where it needs to be, and the steps that are necessary to get there.
In the following case with Corporate House, well do just that. Corporate House, a generic company, is finding itself in the same position as a lot of
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