Evaluating total cost of ownership for university enterprise resource planning: case of Maseno university
View/ Open
Date
2015Author
Owoche, Patrick Oduor
Gregory, Wanyembi
Juma, Kilwake Humphrey
Metadata
Show full item recordAbstract
Higher learning institutions (HEI) are investing in IT to attain operational excellence. Organizations
looking to reduce technology costs typically look for ways to reduce the Total Cost of Ownership (TCO). TCO
captures all direct and indirect costs related to deploying a particular system. Understanding life-cycle costs
provides opportunity to save scarce resources, improve IT and increase productivity. The study sought to
analyze the TCO of university ERP system. The TCO analysis was based on Gartner’s TCO model, the
Distributed Computing Chart of Account as the theoretical framework. Modified Gartner TCO model was used
to determine the total cost of owning Maseno University ERP system. The aim of the study was to create
awareness on life-cycle costs of ERP solutions. The results obtained indicate that operations and maintenance
account for 51%, end-user usage 23% while technology acquisition costs accounted for 16 %, implementation
costs with 7% and the least cost was taken by procurements costs with 3%. Case study was used in gathering
both qualitative and quantitative data from Maseno University. Interviews, document analysis, and
questionnaires were used to gather the research data. It is hoped that the results of this study will help HEIs
improve management of their ERP systems.
Collections
The following license files are associated with this item: