Impact on Decision-Making
Use total cost of ownership data to inform business decisions, such as decisions to invest in, retire, or replace systems, and also decisions relating to budget planning, and evaluation of competing options and business cases.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for Impact on Decision-Making at each level of maturity.
- 2Basic
- Practice
- Use TCO data for a limited number of IT assets and IT-enabled business services to identify some cost control opportunities.
- Outcomes
- There is a growing willingness to use TCO to improve cost management.
- A limited number of cost control opportunities are identified.
- TCO data can be selectively used to inform some key IT decisions.
- Metrics
- # of cost control opportunities identified using TCO data.
- % of IT strategic decisions incorporating TCO data.
- 3Intermediate
- Practice
- Regularly use TCO data for most IT assets and services to build a portfolio of cost control opportunities.
- Outcomes
- There is increased buy-in to the belief that cost management targets are achievable since they are based on actual data from TCO assessments.
- TCO data can be consistently used to inform most key IT strategic decisions.
- Metrics
- # of cost control opportunities identified using TCO data.
- % of cost management initiatives underpinned with TCO data.
- % of IT strategic decisions incorporating TCO data.
- 4Advanced
- Practice
- Systematically use TCO data to restructure the entire cost base across all IT assets and services.
- Outcomes
- There is clear evidence of effective cost management enabled by TCO data.
- TCO data informs all key strategic portfolio/investment decisions.
- Metrics
- # of cost control opportunities identified using TCO data.
- % of cost management initiatives underpinned with TCO data.
- % cost reduction per year by project.
- % of IT strategic portfolio/investment decisions incorporating TCO data.
- 5Optimized
- Practice
- Continually review TCO data in order to enable informed financial decisions across the entire organization, and frequently leverage insights from relevant business ecosystem partners.
- Outcomes
- TCO data continually enables the setting of appropriate cost structures that optimize overall unit costs.
- TCO data systematically informs all strategic portfolio/investment decisions.
- Metrics
- # of cost control opportunities identified using TCO data.
- % of cost management initiatives underpinned with TCO data.
- % cost reduction per year by project.
- % of IT strategic portfolio/investment decisions incorporating TCO data.