What is total cost of ownership

Question

1.Answer the module review questions listed below. These questions were chosen to demonstrate your understanding and help you assess your progress.

1. List and illustrate the components of an ERP system.
2. Define third-part products and why are they needed?
3. What is an implementation methodology and why is it important in ERP implementations?
4. Explain the steps in purchasing an ERP.
5. What is total cost of ownership (TCO) and why should it be a part of the ERP selection process?
6. Contrast the difference between an RFI and RFB. 

2.Using the below elements of TCO, create two scenarios; the first where the TCO is in favor of in-house development; and the second scenario, where TCO is in favor of a software acquisition through a vendor.

1. License & Subscription
2. Installation & Set-up
3. Customization & Integration
4. Data migration
5. Training
6. Maintenance & Support
7. Hardware
8. Other

3.Defined and documented functional requirements are a part of the bid process. Discuss why this would be beneficial in the selection of an ERP system even if a bid is not required. Justify your answer.