Question

Fill in the yellow-colored columns by matching these scenarios with the right category (Tangible Benefit/Intangible Benefit/Tangible Cost/Intangible Cost). Explain why.

No	Scenarios	Category	Explanation
1	With the new system, it is expected of an increase of appointments to be filled at short notice. The expected increase in appointments made = 1 in 3 minutes = 200 slots = RM1000 per slot = RM200,000	Tangible Benefit
2	The system has allowed for nurses in reducing the need to do double data entry process. It has been acknowledged that staff frustration has been reduced.	Intangible benefit
3	The company has decided to outsource the project to ITMS, and the company has to pay RM250,000 known as vendor installation and consulting to ITMS.	Tangible Cost
4	Since the new system is expected to be completed next year, it is expected that there will be potential disruption to the existing system.	Intangible Cost
5	With the new program introduced in UNITEN, it has allowed for UNITEN to have strategic and competitive advantages compared to other universities.
6	The current system requires staffs to do repeated data entry which caused diversion of attention to their daily responsibilities.
7	This new system has lowered the cost of paper supplies throughout 2020.	Tangible Benefit
8	With this new system, since it applies a new OS environment, end-user training will be conducted to all CIMB staffs for familiarization. The training cost will be paid by the CIMB.	Tangible Cost

Answer 1

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No	Scenarios	Category	Explanation
1	With the new system, it is expected of an increase of appointments to be filled at short notice. The expected increase in appointments made = 1 in 3 minutes = 200 slots = RM1000 per slot = RM200,000	Tangible Benefit	The new system has increased efficiency levels and is measurable. It can be measured in monetary terms
2	The system has allowed nurses to reduce the need to do double data entry processes. It has been acknowledged that staff frustration has been reduced.	Intangible benefit	The system has resulted in improving employee morale by reducing their workload. It is not measurable in monetary terms.
3	The company has decided to outsource the project to ITMS, and the company has to pay RM250,000 known as vendor installation and consulting to ITMS.	Tangible Cost	The activity has been outsourced at a specific cost. The monetary value of work outsourced can be measured.
4	Since the new system is expected to be completed next year, it is expected that there will be potential disruption to the existing system.	Intangible Cost	The delay in implementing the new system will result in a disruption in the existing system. There will be a potential loss in terms of opportunity or it might negatively impact customer service levels. The monetary value cannot be estimated.
5	With the new program introduced in UNITEN, it has allowed for UNITEN to have strategic and competitive advantages compared to other universities.	Intangible benefit	UNITEN is improving the satisfaction levels of the students. It is giving them a strategic and competitive advantage compared to other universities in the same league. It cannot be directly converted into monetary value.
6	The current system requires staff to do repeated data entry which caused the diversion of attention to their daily responsibilities.	Intangible cost	The employees' efficiency level is being impacted because of double data entry work. It is also taking them away from their core activities. It is notional loss and cannot be measured in monetary terms.
7	This new system has lowered the cost of paper supplies throughout 2020.	Tangible Benefit	The new system has improved efficiency levels and helped to reduce the cost of the paper supplies. It can be measured in monetary terms.
8	With this new system, since it applies a new OS environment, end-user training will be conducted to all CIMB staff for familiarization. The training cost will be paid by CIMB.	Tangible Cost	The training to the personnel will be conducted at a cost which is measurable in monetary term and the exact cost is known.

Explanation:

Tangible costs and benefits are those which the organization can measure in terms of dollars. Tangible cost and benefits can be measured by using the organization data or conducting competition analysis.

Tangible cost includes expenses for hardware, software new personnel, personnel training, new facilities, upgrading the existing facilities, equipment, and machinery.

Tangible benefits include lower cost to manufacture a product, increase levels of efficiency by providing training or special skills, and increase the sales volume.

Intangible costs and benefits cannot be directly converted into a dollar value.

The Intangible costs include low probability events like opportunity loss, customer dissatisfaction levels, etc.

The intangible benefit includes factors that increase customer satisfaction levels and improve employee morale.