Design of a Corporate Computer System: from Problem Statement to Cost Allocation,
Abstract
The problems involved with the design of a corporate computing center are discussed and a procedure is presented to solve these problems. The focus is on the planning process and the allocation of costs to a user in an organization. The concept of a responsibility center is presented and cost allocation rules for the operation of the responsibility center are developed. The cost allocation scheme attempts to influence users of a computer facility to adjust their demands for processing to that level most beneficial to the overall organization in question. Four conditions are given that form the basis for the development of the cost allocation formula. The costing procedure provides a rationale way to distribute costs; it allocates a larger portion of the costs to the user that would have to pay a proportionally higher cost from an outside or independent source. The planning procedure for a corporate computing system is separated into four steps: Statement of requirements; Translation of requirements into a design; Specification of cost allocation; Determination of the best systems design. An example problem is presented to illustrate the concepts presented in the paper. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1971
- Accession Number
- AD0724161
Entities
People
- A. Whinston
- J. F. Nunamaker