Web-Based Design Systems

Web-Based Design Systems
The development of web-based design systems can influence consistently the organizational performance. This is why the company should choose the best option among the three offers to make the right choice that can bring consistent return on investments with low risks of the failure of the design system. Potentially, each system may have good prospects but, under different circumstances, the effectiveness of each system may differ.

On analyzing the three offers, it is possible to estimate that the candidate offering the web-design system with the estimated lifetime benefits $640.000 and estimated lifetime costs $160.000 offers the highest return on investments. As the matter of fact the implementation of this offer means that the company will spend $160.000 on the development and implementation of the web-design system. At the same time, the overall benefits of the implementation of the web-design system and its functioning will bring $640.000. In such a way, the company will need to invest less than in case of choosing any other offer, whereas the return on investments will be the same. As a result, the company will gain more return on investments, if it chooses the aforementioned offer.

On the other hand, the company should be aware that the offer with the low investments may have higher risks compared to other offers. In this regard, the company should pay a particular attention to the analysis of costs and assessment of possible risks each offer has. Basically, each offer has certain risks but the company should identify the level of risk of each offer to define whether the higher return on investments justify the higher risk or, probably, it would be better to choose moderate return on investments but with the lower level of risk of the offer’s implementation.

In such a context, the solution suggested by the first candidate seems to be the most economically feasible. In fact, the offer implies the average investments, i.e. higher than the second and lower than the third candidates’ solutions. At the same time, the return on investments is supposed to be at the same level as in case of two other solutions. In such a way, it is possible to presuppose that the first solution has a low risk and relatively high return on investments.

Moreover, the minimum lifetime of return on investments is defined by the company as 80%. Consequently, the company counts for gaining relatively high return on investments for the defined lifetime of the web-based design system. In such a situation, the third candidate’s solution needs substantial investments and probably the company will fail to gain the maximum return on investments in the defined timeline. As for the second offer, this offer may need more time for receiving maximum return on investments and this time may exceed the timeline defined by the company. Therefore, the first candidate’s solution is the best choice because it implies substantial investments that may bring considerable return on investments in the timeline defined by the company. Hence, the company should choose this offer.

References:

Rubinstein, M. (2006). A History of the Theory of Investments. Hoboken: John Wiley & Sons, Inc.

Web-Based Design Systems 8.9 of 10 on the basis of 2679 Review.