When employees are being trained they are not working. The lost productivity, cost of temporary help, overtime, etc., should all be computed as a cost of acquisition. There are also productivity losses while employees begin to apply newly learned techniques and skills. The greater the change in operating environments, the higher the likelihood the incumbent staff will need to be replaced. It is therefore critical to recognize that any major change will create turnover.
Turnover creates costs for recruitment, agency fees, interview time, etc.
Independent lessors must factor in the anticipated residual values when quoting the financing arrangements for the acquisition of a new system. Automating or upgrading an existing computer installation has a significant price tag which management is better off facing up front. Your summary analysis will indicate that the equipment cost is but a small element of total cost. The temptation will be to try and eliminate or significantly reduce some of the activities set forth in your analysis. For example, you may think your staff doesn't require extensive training and can learn on the fly.