Thursday, October 31, 2002

White Paper on Technology Buying Cycle

My only comments after reading the synopsis (I’ll look at the full paper later) is to compare this with Gartner’s Hype Cycle (I wrote about this last December). More later…



From Ross Mayfield’s Weblog:



Whitepaper: Timing Your Business Case.



I have posted a whitepaper on the use of financial metrics (ROI, TCO, ROA, etc.) in consideration of the technology adoption lifecycle.  Below is the abstract and link to the paper.  Please email me your comments: Click here to send an email to the editor of this weblog.



 


Buyers and Sellers of technology have renewed their focus on valuation metrics such as Return on Investment (ROI), Total Cost of Ownership (TCO) and Return on Assets ( ROA).  There has been a marked shift from using ROI to TCO for the bulk of technology companies.  Today’s focus on cost cutting, however, only explains part of this shift.  Customers demand business cases using different metrics at different times depending upon their aversion to technology risk and the business cycle.  This article introduces a new framework, the Technology Valuation Lifecycle, for understanding when and why valuation metrics should be applied.  The 5 Value Drivers for ROI, the Whole Cost Model for TCO and the Competitive/Capacity Advantage for ROA reveal key considerations for metric inputs.  The article also highlights key business cycle considerations for valuation metrics and the drawbacks of metrics in developing a business case of technology purchase. Download this whitepaper in pdf format [Ross Mayfield’s Weblog]

No comments:

Post a Comment