InformationWeek: The Business Value of Technology

Table of Contents

3 Author's Bio
4 Executive Summary
5 The TCO Rationale
5 Figure 1: IT Budget Timeframe
6 Step 1. Identify the Lifecycle
6 Step 2. Rethink Traditional Assumptions
7 Step 3. Use Columns
7 Figure 2: Percent of Total Operating Budget Allocated to IT Expenditures
8 Step 4. State All Assumptions
9 Step 5. List All Known Cash Flows
9 Figure 3: IT Operating Expense vs. Capital Expense
10 Step 6. Ask Finance for Cost of Capital
11 Step 7. Calculate Net Present Value
11 Step 8. Compare With Another Project
11 Step 9. Consider Graphics
12 Step 10. Congratulate Yourself
12 Figure 4: Cost of WAN Links
13 Related Reports

 

About the Author