MSc-IT Study Material
June 2010 Edition

Computer Science Department, University of Cape Town

Costs and Benefits

For further reflection, consider the costs and benefits of intra-corporate communication over the net. How expensive is it to actually write the needed software? How effective is it once the programmes have been written?

From a more technological standpoint, what are the technologies that need to be implemented for a virtual company to work. Is Groupware needed? What about security issues, including untrusted members of the organisation? What are the HCI concerns for such systems? What are the issues relating to infrastructure (e.g. networks and computers)? What about people who are not computer literate?

We do not attempt to answer all of these questions, but they do provide food for thought. They illustrate that shifting a company into a virtual organisation is not as simple as it may appear.

Exercise 6: Videoconferencing: Return on Investment

Videoconferencing looks like a great idea, but some important issues need to be considered to determine if it is worth the investment. Requirements for a videoconferencing system include a central station, around 20 terminals, and a good Internet connection; this could represent an investment of around half a million rand. The return on the investment (ROI) is through saving on travel time, travel fares, accommodation costs on so on, and these will vary greatly from country to country and from company to company. To be sure that videoconferencing is a good investment, the costs need to be carefully balanced.

Think of an organisation you know well. Given an investment of R500 000, estimate how long it would take to recoup the investment in travel savings from face-to-face meetings.

Now do Review Questions 4 and 5.