Systems cost of the process "Manage sales orders" as a percentage of total process cost
This measure calculates systems cost as a percentage of the total cost to perform the process "manage sales orders". Systems cost refers to a variety of expenses related to computer hardware/software, network and application maintenance, data storage, etc., and all fees paid to full-time, part-time, or temporary employees or independent contractors hired to perform these services. These should not include one-time costs for major new systems developments/replacements. The Process "manage sales orders" includes [Taking, receiving, processing, and acknowledging new customer orders or amendments to outstanding customer orders. Monitoring status from order receipt to customer delivery/customer invoicing.]. This Supplemental Information measure is intended to help companies evaluate additional variables related to the process "Manage sales orders".
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Compute this Measure
Units for this measure are percent.
Percentage of internal cost of the process "Manage sales orders" allocated to systems cost * Percentage of total cost of the process "Manage sales orders" allocated to internal cost * .01
Key Terms
Systems costs include all expenses, paid or incurred, in conjunction with:
Computer hardware or computer software acquired by the organization or provided to the organization through service contracts.
Any related costs to process, service and maintain computer hardware or computer software. The costs of providing and maintaining services for each applicable process (e.g., computer system(s) processing (CPU) time, network/system communication charges, maintenance costs for applications and data storage). This includes the costs related to LANs, WANs, etc. This does not include one-time costs for major new systems developments/replacements. Consultant fees should not be included in depreciation of new system implementations. Include only those costs that occur more than six (6) months after implementation, as normal system maintenance costs. Any systems cost (e.g., maintenance) which is outsourced to a third party supplier should be captured in the separate cost category labeled outsourced cost.
Systems cost should include all salaries, overtime, employee benefits, bonuses or fees paid to full-time, part-time or temporary employees or independent contractors who perform services relating to computer hardware, computer software, processing or systems support.
Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.