4 ms·
Unpacking that a bit, training costs are to do with interface complexity (in the sense of "necessary" complexity) due to integration with other systems, and oth
by hyperpallium 9y ago
Unpacking that a bit, training costs are to do with interface complexity (in the sense of "necessary" complexity) due to integration with other systems, and other information. i.e. it's not 100% automated; you can't just press a button. It's more "amplification", where you must be trained and practised to use it effectively - a tool for skilled labour. If you're super-successful, yours becomes a de facto standard, which others copy (usually, you still command a premium; but for the life-style idea here, we'd want to avoid that).
This might be included as "installation" costs, along with and engineering integration with other information systems, Related is the organizational purchasing process, expensive for larger transactions: determining requirements, evaluating alternative vendors and solutions, sign-off from legal and upper management, and so on. Change itself is disruptive, there'll be teething problems, other systems will have to adapt, and other knock-on effects apart from training itself. These are one-off costs that you'd prefer not to incur again, unless there's a very large benefit (your example of 10x is worth it, but not (11/10)x).
All are switching costs.