Cost of Solution vs. Cost of Problem
Jens Meiert, September 20, 2007 / March 7, 2008.
This entry is filed under Uncategorized.
Problems cost money, and problems require solutions that also cost money. This is known in all industries, but in many cases, there apparently is focus on one side only: What does the solution of a problem cost? This ignores the other side, the cost of the problem.
Evaluating cost of solution is simple: You just determine the temporal and monetary efforts you need to develop and implement it. You’re looking at the necessary resources. Cost of problem, however (and in fact), equals the price of doing nothing. That is an important economic principle already known from cost-benefit analyses – and that is sometimes forgotten.
I recently wrote more concerning that matter for Germany’s Dr. Web mag (liable for costs), including more details and examples. Unfortunately, that prevents me from being more precise in this place, yet. However: Always focus on the cost of problem as well in order to prioritize correctly. Some changes are unnecessary and expensive, others are critical and must not be delayed.
If you cannot wait for more intel from this site: Jeff Thull’s been on the same track. (Paved with free registrations.)
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