4 Costs to Consider When You are Doing a Cost-Benefit Analysis for Your IT System

4 Costs to Consider When You are Doing a Cost-Benefit Analysis for Your IT System

Today and in the future, no business will survive without incorporating the latest technology in operations.

Just like with any kind of change, deciding to invest in a particular technology is not easy, especially if a lot of money is involved. That is why conducting a cost-benefit analysis (CBA) is essential.

What is a CBA?

A CBA is a comparison of the cost that you would incur to bring on a particular technology in your business versus how much you would benefit from it.  Conducting a CBA can be as easy as drawing a ‘T’ column and writing down costs on one side and benefits on the other. That is easy for things that are easy to quantify.

For example, you can easily calculate the actual purchase price and installation costs for a software system. You can also estimate how much more money you will be able to make thanks to the new technology. These include savings due to the efficiency of doing things or access to more customers.

The Difficulty of Calculating CBA

Often, however, calculating CBA is not that easy. That is because of unquantifiable and hidden costs and benefits.

It is difficult to identify and calculate, for example, how safe your IT system is. In that case, you should hire a firm that provides qualified IT experts to help analyze the safety of your system. Start looking for IT Support In Dublin.

What to Consider When Calculating IT Costs

Apart from the usual buying and installation costs, below are 4 potential IT costs to consider. These are the costs of preventing:

  1. Internal attacks

How much do you trust your employees? No matter how much you trust them, invest well in protecting your IT systems from internal attacks. Even in a bunch of perfect employees, you could be unfortunate to find a rogue one who will be the downfall of your business.

Even mistakenly, insiders can wipe out data, costing your company millions of money.

To prevent internal attacks, you will have to be very vigilant in putting protective measures in place. These include educating your employees on safety measures for the new system and hiring a private vendor to manage your network services 24/7.

  1. Hardware attacks

There is no knowing when criminals can plan to wreak havoc on your new software. You, therefore, need to be get prepared for this. Again, you should educate your staff on the best practices of using your hardware devices.

For example, do they know how to create strong passwords? Do they all lock down their computers when they are done for the day? Is all the crucial data encrypted? It only takes one device that was left on for criminals to steal your data should they break-in.

To protect your hardware, you should also get prepared to invest in physical security. This includes measures such as CCTV cameras and employing security personnel.

You should also be preventing unauthorized access to your business. Someone may, for example, plan to social engineer your system by leaving a malware USB lying idle on a random table with a fake message attached to it.  If anyone inserts the disk into your systems, it corrupts your data. In such cases, you need to invest in password-protected entrances and locked main doors.

  1. Downtime

The real reason why you are investing in an IT system is to improve efficiency and ultimately, sales. Remember, however, that systems can develop technical issues and break down. You should know how much you are likely to lose every minute or hour your system stays down.

You should also put in place a quick mitigation plan to help your system get back up and reduce business losses. For an issue such as a power outage, you need a backup plan such as a generator.

  1. Unproductivity due to poor system maintenance

When employees experience issues such as painfully slow systems or bugs and crashes, productivity reduces. Sadly, most times, businesses get too used to technical hitches that it doesn’t count for immediate attention. An employee will struggle for days with a slow device and fail to report it.

That leads to wastage of precious time that may impact organizational productivity. In such cases, you need to educate your employees that they must report any technical issues that affect their productivity immediately. Additionally, you may have to hire a have a standby IT person to handle any issues that come up and to maintain the system regularly.

Final Words

IT is an inevitable part of any business that wants to remain competitive. Sometimes, however, it comes with many hidden costs that may worsen a business’s productivity. You need to determine the accurate costs and benefits of having particular IT systems.

If incorporating technology will be counter-productive, you can always outsource IT services.

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