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Firm's reputation: Value associated with the public perception of the company's brand. Poor IT management or failures can damage reputation, affecting customer trust and loyalty.

Employee morale: Overall satisfaction and motivation of employees. Intangible costs arise from low morale due to ineffective IT systems, leading to decreased productivity and increased turnover.

Customer satisfaction: Level of satisfaction experienced by customers when interacting with the company. Poor IT performance can lead to customer dissatisfaction, resulting in lost sales and negative reviews.

Opportunity costs associated with decision-making: Potential benefits forgone by choosing one alternative over another. Poor IT decision-making can lead to missed opportunities for innovation, market expansion, or competitive advantage.

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Cost reduction: Measurable decrease in expenses due to the implementation of new systems or processes. For instance, automation of manual tasks can reduce labor costs, and improved efficiency can lower operational costs.

Savings on materials, building space, or inventory levels: Savings occur when more efficient processes or better inventory management reduce the need for physical resources. For example, just-in-time inventory systems can minimize the amount of stock that needs to be held, reducing storage costs.

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Improved planning: Ability to make better strategic and operational plans due to more accurate and timely information. Enhanced planning capabilities can lead to more effective resource allocation and better alignment with business goals.

More timely information: Access to up-to-date information allows businesses to respond more quickly to market changes and customer needs, improving decision-making processes and increasing agility.

Better decision-making: Result of having comprehensive and reliable data, which helps managers make more informed and effective choices, leading to better outcomes for the business.

Enhanced customer service and market development: Improved IT systems can enhance customer interactions, leading to higher satisfaction and loyalty. They can also enable the business to explore new markets and expand its customer base by offering better products and services.

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Abandoning traditional approaches based on long-term stability of the business environment:

Moving away from outdated planning methods that assume a stable and unchanging business environment. Modern application planning must be flexible and adaptable to rapidly changing market conditions and technological advancements.

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Aligning applications with strategic business objectives:

Ensuring that the applications being developed or implemented support the overall goals and strategies of the organization. This alignment helps in achieving long-term business success and ensures that IT investments are directly contributing to business priorities.

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Evaluating the salience and worth of applications being considered:

Assessing the relevance and value of each application to determine its potential impact on the business. This involves considering factors such as user needs, business processes, and the expected return on investment.

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Prioritizing applications that offer quick wins and significant impact:

Focusing on applications that can be implemented quickly and provide immediate benefits to the organization. These "quick wins" help build momentum and demonstrate the value of IT projects to stakeholders.

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Documenting planned applications and their justification:

Keeping detailed records of all planned applications, including the reasons for their selection and the expected benefits. This documentation helps in tracking progress, managing resources, and justifying the investment to senior management.

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Identifying time frames and impacts on IT architecture and disaster recovery plans:

Defining the timelines for developing and implementing applications and understanding how they will affect the existing IT infrastructure. It is also crucial to consider how new applications will be integrated into disaster recovery plans to ensure business continuity in case of emergencies.

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Asking for and checking references:

Gathering and verifying references from potential outsourcing partners helps in understanding their past performance, reliability, and the satisfaction level of their previous clients.

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Assessing the culture of the outsourcing partner:

Evaluating the cultural fit between your organization and the outsourcing partner ensures smoother collaboration and better alignment in values and work ethics.

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Evaluating multiple options and getting agreements in writing:

Considering various outsourcing options allows you to compare their strengths and weaknesses. Once a decision is made, formalizing the agreement in writing avoids misunderstandings and ensures both parties are clear on the terms.

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Focusing on metrics and transparency (open kimono):

Establishing clear performance metrics and maintaining transparency throughout the project helps in monitoring progress and addressing issues promptly. This approach fosters trust and accountability.

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Choosing a partner with a strong network:

Selecting an outsourcing partner with a robust network of resources and contacts ensures they have access to necessary expertise and can handle any challenges that arise efficiently.

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Avoiding decisions based solely on price:

While cost is important, making decisions based only on the lowest price can be detrimental. It's crucial to consider the quality of service, reliability, and the overall value provided by the outsourcing partner.

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Ensuring thorough reference checks and long-term planning:

Conducting detailed reference checks verifies the outsourcing partner's credibility and capability. Additionally, having a long-term plan ensures the partnership aligns with your organization's future goals.

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Keeping communication open and direct rather than via committees:

Direct communication channels with the outsourcing partner help in resolving issues quickly and maintaining a clear understanding. Relying on committees can slow down decision-making and create bottlenecks.

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Retaining project management and avoiding single-source dependency:

Maintaining control over project management ensures your organization's interests are prioritized. Avoiding dependence on a single outsourcing provider mitigates risks and ensures continuity in case of any issues with the provider.

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Hardware and software costs: Expenses related to acquiring and maintaining physical equipment and software essential for business operations. This includes computers, servers, networking devices, and licensed software applications.

Labor costs: Wages and benefits paid to employees involved in the implementation, maintenance, and support of information systems, including IT staff, project managers, and consultants.

Space utilization: Costs of the physical space required to house IT infrastructure, such as server rooms, data centers, and office space for IT personnel.

Time taken for implementation: Costs associated with the duration required to install, configure, and deploy new systems, including the time spent by employees and any delays impacting the business.