Acquisition of new technology is often a perilous event for firms. The successful acquisition and implementation of new systems require much more than merely purchasing hardware and software. For example, costs are likely to be incurred for the following:
• Research and consulting to select software and hardware vendor
• Software training
• Upgrading IT infrastructure to operate new hardware and software
• Continuing hardware and software support
• Implementation of the new system
a. Why should training be included as a cost of technology acquisition?
b. How can the financial function of a business improve the internal process of technology acquisition?