Universal economic analysis methodology for IT transformations

Abstract

Economic analysis on the financial benefits and risks is crucial for deciding whether an IT transformation should take place. While the financial analysis techniques for general investment is well known, and there have been case studies for many IT types of IT transformations, there is no good methodology that an IT professional can follow and readily conduct return on investment or total cost analysis. This paper aims to fill this void and proposes an economic analysis methodology that is applicable to all IT transformations. © 2012 IEEE.