It is important that existing and new systems are put into consideration as organizations work towards improving technology within their administration systems. The following are key factors for determining whether an organization should replace an existing technological administration system or not;
- The cost of running an existing system- There are various running costs that the management should consider before introducing a new technology. Examples include manpower costs, operational costs and material costs. The cost of running new technology should be lower as compared to the costs of running an existing one.
- The cost of introducing and developing a new system- Such costs include consultancy fees involved in hiring experts who will evaluate the new system to determine whether the system is performing according to expectations.
The best way to evaluate if it’s better to embrace new technology in your organization is through cost-benefit analysis. This is a technique that aims at comparing the costs incurred with use of the new system and its benefits.