Context/Background

A mid-sized company is planning to adopt a new Customer Relationship Management (CRM) software system. The company has allocated a limited budget for the software, covering initial purchase, setup, training, and first-year operational costs. The total cost of ownership (TCO) for the first year is a critical factor in the decision-making process. The company needs to ensure that the chosen CRM solution fits within their budgetary constraints while meeting their operational needs.

Source

Finance department of a mid-sized company wishes to adopt a new Customer Relationship Management (CRM) software system.

Metric/Acceptance Criteria

The total cost of ownership (TCO) for the first year of the CRM software must not exceed the set budget of $24,000. This TCO is broken down into the following specific cost categories:

• Initial licensing cost must be less than or equal to $10,000
• Setup and deployment costs must not exceed $5,000
• Training costs for 50 employees must be kept at or below $3,000
• Maintenance and support costs for the first year must be less than or equal to $2,000
• Operational costs, including cloud hosting, for one year must not surpass $4,000
• The sum of all these costs (Total First-Year TCO) must be less than or equal to $24,000
• All costs must be verifiable through official quotes, invoices, or contracts
• Any potential hidden costs or fees must be identified and included in the TCO calculation
• The chosen CRM solution must meet at least 90% of the company’s functional requirements within this budget
• The TCO calculation must be completed and verified at least 30 days before the final decision on CRM adoption