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Pitfall No. 4 : Champagne Dreams/Beer Budgets

Trying to implement a computerisation program as cheaply as possible is another mistake companies come to regret. Funding for computerisation initiatives is often not included in the budget when companies kickoff their effort. It is, therefore, tempting to take a low-cost approach to the problem, so as not to cause any waves in the current fiscal year plan. Companies may try to implement their program with left-over hardware, or they may ask the MIS department to start the development effort during their spare time. If they do look at commercially available packages, they may make price, a major decision criterion. 

These tactics are extremely prone to failure. Slow hardware response time can turn users off to the point where they refuse to use the system. Part-time programming projects typically never get done. Buying the lowest cost technology choice may work In a mature market like spreadsheet software, where there are now minimal differences between products like Lotus 1-2-3 and Microsoft Excel. But it rarely results in the right choice in a complex market like materials automation where one has hundreds of vendors each approaching the problem from a different perspective. 

Cost should never be the first thing to focus on in a computerisation initiative, benefits should. The revenue increases and cost savings one can generate through a computerisation program can be tremendous. But they don't come free. If no budget is made for automation, then it should not be attempted. 

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