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by Erik W. Marke Grossmann, 2000
Much has been written about what is wrong with data processing today. There are backlogs of several years. It takes too long to build systems, and the cost is too high.
The difficulties of maintenance are outrageous. Management cannot obtain information from computers when needed. Many programs are fragile spaghetti code. Problems in data processing prevent the rapid introduction of new business procedures .
Today, computers are assuming more important roles in business, governments and the military. We have entered the age when computing and information systems are strategic weapons, not a backroom overhead. The term mission critical system and strategic system have become popular. There are many examples of corporations growing faster than their competition because they had better information systems. In cases, corporations have been put out of business by competition with better computing recourses.
IT investments, like all business decisions, are based on economic value. Determining economic value includes weighing at least three factors: economic benefits, risks, and costs. The benefit and risk factors used to value IT investments vary from firm to firm and industry to industry. This article focuses on one important part of the overall value picture: cost.
Total Cost of Ownership (TCO) is a model that helps enterprises understand the direct and indirect dollar costs associated with owning and using an Information Technology (IT) component throughout its lifecycle. You can think of TCO as the sum of all the ”little costs” that go into acquiring, installing, managing computers, networks, applications and End user Cost (EUC). The collection of costs can be partitioned into a TCO Model and used with a management methodology to form a decision support tool. The combination of a TCO Model with a methodology provides an IS professional with the understanding of all costs associated with the computer systems, and a decision making tool on how to best to manage and improve the systems, delivering more value to the business from the IT investments.
26 Pages
Date Added
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07/13/2008
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Erik, „Capital“, „Supplies“, „Total, Ownership“, „Administration“, „Asset, Management“, „Formal, Audit“, „Legal“, „Policy, Enforcement“, „Purchasing“, „Security“, „EndUser, Operations“, „Applications, Development“, „Casual, Learning“, „File, „, Factor“, „Peer, Support“, „Technical, „Application, Consulting“, „Configuration, Review“, „Data, Extract“, „Documentation“, „Installation, Changes“, „Newsletter, Group“, „Planning, „Product, Introduction“, „Service/PM“, „Standards, „Tier, Desk“, „Training, „Vendor, Liaison“, „CASE“, „CEO, „CFO, „CIO, „COO, „DCO, „DT, „EIS, „EUC, „HR, „IC, „IE, „IS, „IT, „JITT, „LAN, „LoB, „MIS, „NC, „NETPC, „NIC“, „NOS, „NT, „P&P, „PC, „PDA, „ROC, „ROI, „ROM, „TCO, „TOC, „TQM, „WAN, „WBT, „WWW, „Computer, Engineering“, „Chief, Officer“, Operation“, „Desktop“, „Executive, System“, Computing“, „Human, Resources“, „Information, Center“, Systems“, Technologies“, „Justintime, training“, „Local, Network“, „Line, Business“, „Management, „Network, Computer“, PC“, Card“, „New, Technology“, Procedures“, „Personal, Assistant“, „Real, Cost“, „Return, Investment“, „Wide, „Windows, Terminal“, „World, (Internet)“, Marke, Grossmann, Technology-General
cost management, scope and delimitation
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Attribution Non-commercial
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