Extrapolate Costs and Quantify Benefits
Examine implementation and operating costs over five years. Examine and quantify benefits over the same timeframe.
Examine Risk Sensitivity
Input the risks associated with the enterprise applications efforts. Identify mitigation strategies. Examine potential sensitivity impact.
Visually overlay benefits and costs, including risk sensitivity impact. Analyze the time to positive ROI. Determine if the project meets minimum viability.
Enterprise Application TCO-ROI Assessment
An RFP does not accurately represent total cost of ownership (TCO).
When examining the cost of an enterprise application, it is imperative to include all implementation costs, including external and internal costs, as well as operating costs over a five-year timeframe.
Quantification of benefits is necessary to determine return on investment (ROI).
In examining whether an enterprise app should be proceeded with, it is critical to quantify benefits in order to effectively examine return on investment.
Enterprise application implementations are often high risk.
Proper identification of risks associated with an enterprise application implementation is imperative to understand possible cost overruns and implement mitigation strategies.
Minimum viability needs to be ascertained.
Before proceeding with an enterprise application implementation, TCO, benefits, and risk need to be examined together to more accurately ascertain minimum viability.
Gather the Required Information
Understand the business objectives, stakeholder assessment, and market research.
Conduct the TCO-ROI Analysis
Use the workbook to conduct the TCO-ROI analysis.
Present the Case
Review findings onsite with stakeholders. Present the TCO-ROI minimal business case one pager and discuss next steps.