Determining the (TCO) or total cost of ownership for a strategic information system investment is a critical part of the leaders’ role in using technology
Determining the (TCO) or total cost of ownership for a strategic information system investment is a critical part of the leaders’ role in using technology in a transforming way. The Return on Investment Analysis depends upon reliable estimates of both the capital outlay and ongoing operational costs associated with the initiative over a period of time. This Assignment focuses on outlining both the capital and ongoing operational costs associated with a typical technology investment. You will outline the costs and, as importantly, the assumptions that you used in deriving these financial estimates.
To prepare:
Review the Pro Forma Explanation Material and HIT Program Pro Forma Template in the Learning Resources.
The Assignment:
Write a 2-page APA style paper, addressing the following elements for the scenario that you chose in Week 3. This will also be the scenario used to complete your Final Project. For this Assignment, address the financial element of the project Charter used to plan the acquisition of an HIT solution for the setting of choice. The financial analysis has two parts:
Using the HIT Pro Forma Template provided in your Learning resources, complete the anticipated capital and operating costs of the HIT solution that you are proposing in the Week 3 Assignment.
Justify the assumptions that you used in your proforma.
…………………….Answer preview…………………….In any investment, it is essential to consider the costs and the capital outlay by the investors. The various expenses should be broken down in a manner that can be easily understood by the multiple parties. The costs should be analyzed on a periodical basis to make sure they are well spread out and realistic. This will not only facilitate cost control and minimization but also makes sure that the various expenses…………………