Question

A company that handles deliveries for other companies and individuals (you can use Yurtici or Aras Kargo as examples) considers to implement a new system for managing their trucks. Currently, the drivers get a fixed order of destinations, deliver the packages and get a signature on a paper slip. They hand in the slips in the evening to their manager. The manager checks against the orders, and approves that deliveries have been made. With the new system, the drivers have a hand-held device connected to traffic information, and an information system that changes the route dynamically to avoid traffic jams. Also the customers sign with a pen on the hand-held device, if a signature has been done, the delivery is marked as completed automatically.

You should try to identify all possible factors both for benefits and costs. In the business case, describe all of them, and try to quantify them, detailing how this quantification could have happened (actual numbers can be guessed at or made up, like for example hardware costs). Based on this quantification, aggregate the results for costs and benefits over an adequate time interval and give an overall assessment and recommendation. You can also include intangible benefits and strategic considerations in your final recommendation.

Answer 1

Identifying cost and benefits:-
The essential classifications that costs and benefits fall into are direct/indirect, tangible/intangible, and real:

• Direct costs are regularly connected with the creation of a cost object (item, administration, client, undertaking, or movement)
• Indirect costs are typically fixed in nature and may originate from the overhead of an office or cost focus
• Tangible costs are anything but difficult to gauge and evaluate and are generally identified with a recognizable source or resource, similar to finance, lease, and buying instruments
• Intangible costs are hard to recognize and gauge, similar to shifts in consumer loyalty, and efficiency levels
• Real costs are costs related to delivering a contribution, for example, work costs and crude materials

A benefit implies an organization picks up benefits because of item and administration deals or gains points of interest due to opex minimization or advancement. Benefits can be tangible and intangible. The basic tangible benefits would be income, money pay, and cost decrease. Basically, it is the net benefit gain for a running business. The intangible benefits would incorporate raising consumer loyalty rate, improved worker inspiration, developing piece of the overall industry, and better notoriety for an organization's image. In the IT business, the intangible benefits are significant, particularly for some, new businesses. There are numerous strategies to quantify intangible benefits, for example, multiobjective, multicriteria modes, esteem examination, basic achievement factors, and so on. As we have shown previously, numerous vital or long haul benefits are intangible estimations and they are very hard to estimated or evaluate in light of the fact that they are abstract and prescient in nature.