For Business Process & Applications Professionals (Length: 12 pages)

August 4, 2008

The Total Economic Impact™ Methodology: A Foundation For Sound Technology Investments

by Chip Gliedman

with Jon Erickson, Lauren Hughes, Sharyn Leaver


Executive Summary (This is a document excerpt)

Underlying any investment is the ever-present question of "What am I going to get for my money?" To answer this question, Forrester developed the Total Economic Impact™ (TEI) methodology. TEI provides a rigorous cost and benefit analysis framework that explicitly incorporates an evaluation of future technology and business flexibility and associated risk. Business process and applications professionals should use TEI to better align technology decisions with business needs, boost project success rates, understand and mitigate risks, and ultimately accelerate business growth.

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TABLE OF CONTENTS

NOTES & RESOURCES

itemTraditional Business Cases Lack Completeness

itemFour Elements Of TEI: Benefits, Cost, Risk, And Flexibility

itemBenefits Measure Future Positive Impacts Of The Project

itemCost Measures The Negative Impact On IT And The Business

itemRisk Quantifies The Impact Of Future Uncertainties

itemFlexibility Values Future Options

recommendations

itemUse TEI To Justify And Communicate Investment Choices

TEI was developed in 1997 to provide a methodology and framework to analyze technology investments. It has been used as the basis of hundreds of business cases and case studies.

Related Research Documents

itemThe Components Of A Quality Business Case

July 18, 2007

itemA Disciplined Approach To Quantifying Technology Benefits

December 13, 2004

itemValuing IT Flexibility

June 8, 2004

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Analyst: Chip Gliedman
Technology: Application Strategy & Selection, IT Spending & Budgeting, Packaged Applications, Sourcing & Procurement, Sourcing Strategy & Execution, Total Economic Impact™
Geography: Asia Pacific, Europe, North America

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Ratings and Comments
Rating: 9 out of 10
based on 10 ratings across all roles.
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