Costs dynamics and optimal systems size in new computer environments

Abstract

This work presents estimation algorithms of the four main effects of new computer environments, namely: the scale effect; the learning and experience effect; the scope effect; and the complexity effect. The methodological approach is, for the first time, an integrated approach in the sense that all these effects are interrelated to highlight the costs dynamics and the optimal size of these new systems. The article shows that, compared to traditional centralized systems where the dominant effect is a scale effect, new computer environments are characterized instead by a scope effect as a result of material resources sharing and software standardization. Finally, it appears that costs dynamics is a significant strategic importance to an organization when choosing complex information systems.<>