In this section the expected outline of investment cost were estimated for building the platform.

The costs are based on available information based on cases similar to this solution. The expected investment cost are defined in 3 scenarios. The first scenario is the expected outline of investments costs. The second and third scenario expose possible errors during the development process. The expected project costs; Project Costs Details Frequency Amount Project staffing salary Permanent employment Software Hardware Marketing plan Maintenance updates Housing/ Inventory Developers, (estimated total of 1400 hrs at 40/hr average) Staff (e.g. marketing, developers, ict) (estimated salary p/y 40.000 Fte) License software, purchase & installation Development computers research and advertisements Ongoing maintenance, Features updates (estimated total of 1000 hrs at 40/hr average) Building, utilities One-time Ongoing One-time One-time One-time Ongoing (P/Y) Ongoing (P/Y) 56.000 120.000 2.000 3.000 25.000 40.0000 30.000 656.000

Total anticipated costs over 3 yrs

The outline of the expected investment cost for the coming 3 years is anticipated on 656.000. Although during the software engineering process there always occur unexpected errors (e.g. complexity, changing features etc.) According to Eveleens and Verhoef 2010 only 30% of the software engineering processes are successful. Therefore there are two scenarios what could happen if unexpected errors occur. In scenario 2 the estimated development costs turn out 25% higher than expected. The project deliverables are overtime. This delays the market launch of the platform. Expected additional costs range; [75.000-150.000]. Scenario 3 is the worst case scenario were the estimated development cost turn out 100% higher than expected. In this scenario features will changes during the process and developers have other thoughts about how features should look like. The expected additional costs range is; [250.000-350.000].

+25%

+100%

Solution 1: building the platform from scratch In the first solution, the platform will be entirely built up from the beginning. This means that most of the incurred expenses will be in the early stages of the project. The cost could be divided in the following percentages based on similar platforms and applications; 66% salary of the developers, 24 % on maintenance costs, 5% hardware costs, 4% marketing costs and 2% housing costs.

Worst scenario 5% 5%*268.000=13.400

Middle 20% 20%*268.000=53.600

Best 35% 35%*268.000=93.800

5%*28.000=1400 Total 14.800 20%*14800=2960 2960*4.99=14770 Revenue Cost 14.770

20%*28.000=5.600 Total 59.200 20%*59.200=11.840 11.840*4.99=59.082 59.082

35%*28.000=9.800 Total 103.600 20%*103.600 =20.720 20.720*4.99=103.393 103.393