For Sourcing & Vendor Management Professionals

The ROI Of Software-As-A-Service

A Total Economic Impact™ Analysis Uncovers Long-Term Value In SaaS

by Liz Herbert, Jon Erickson, July 13, 2009

Firms almost always consider software-as-a-service (SaaS) as a cost-advantage over on-premise in the short run due to its quick implementation times and pay-as-you-go pricing. But many firms question the long-term value of SaaS, wondering if the rent-versus-own . . .

For Business Process & Applications Professionals

The Financial Impact Of Packaged Applications

A Tool For Comparing The ROI Of Enterprise Applications

by R "Ray" Wang, Jon Erickson, July 11, 2006

Historically, choosing a packaged enterprise application, (e.g., enterprise resource planning or ERP, customer relationship management or CRM, or supply chain management or SCM) or assessing the benefits of existing systems began and often ended with . . .

A Disciplined Approach To Quantifying Technology Benefits

by Jon Erickson, Lauren Hughes, December 13, 2004

Nearly three-quarters of companies recently surveyed by Forrester quantify the anticipated benefits for new technology investments in financial analyses. However, only 14% believe that their estimates are very accurate. Benefits are often more difficult . . .

Including Risk Analysis Increases Confidence In Business Case Estimates

by Jon Erickson, Lauren Hughes, September 23, 2004

Measurement of financial risk within technology investments is defined as the factors that create uncertainty in the cost and benefit estimates as part of an economic or business case justification. The findings of a recent survey indicate that measurement . . .

Applying Flexibility to Infrastructure Investments

by Jon Erickson, September 19, 2003

There are several possible approaches to measure the value of flexibility, but regardless of which method used, the downstream value that is created by certain infrastructure investments should be part of any project justification process.

Delay in Technology Investments - Cost

by Jon Erickson, September 8, 2003

Understanding how delay impacts a given investment is an important criteria in thinking about the given cost and benefits of moving forward with a technology decision.

For Application Development & Program Management Professionals

Leveraging Net Present Value for Open Source Software Deployment

by Stacey Quandt, Jon Erickson, June 17, 2003

Measurement of direct costs and direct benefits is just one part of the open source value equation. Organizations considering open source should look at not only direct costs and benefits but also the indirect value of open source.

IT Trends 2003, Midyear Update: IT Value Management

by Jon Erickson, Chip Gliedman, June 4, 2003

Managing and measuring the return on technology investments continues to be a top issue for organizations. Driven in the past by budget scrutiny, IT has begun clearly articulating the value technology can bring to an organization's bottom line.

Valuing Metadata: Costs, Benefits, Risks, Options

by Lou Agosta, Jon Erickson, March 20, 2003

Metadata is a powerful lever in improving development and operating efficiencies, i.e., working smarter. However, before proceeding with metadata initiatives, IT departments should take a realistic look at metadata costs and benefits, risks and options.

GigaTel Straw Poll: Metadata Treated Haphazardly

February 28, 2003

The results of a straw poll at a February 2003 GigaTel indicate that the overwhelming majority of participants understand the concept of metadata but use it haphazardly and inconsistently on a project-by-project or department-by-department basis.

Windows vs. Linux Study Highlights Limitations of TCO Analysis for IT Decisions

by Stacey Quandt, Jon Erickson, December 11, 2002

A TCO analysis should not be used to justify major technology or architecture directions, to set priorities for major products, or to compare products in different categories. IT managers should assess benefits, costs, flexibility and risks.

The Effectiveness of Discount Rate as a Measure of Investment Uncertainty

by Jon Erickson, November 8, 2002

Use of the discount rate should be primarily seen as a mechanism to quantify the opportunity cost of capital for a given investment. However, Giga advises that the discount rate should not be the only measurement of risk around a given investment.

Quantitative Assessments for Justifying Security Risk

by Jon Erickson, October 16, 2002

Quantitative measurement of security risk is an important part in the justification of certain types of technology investments. Relying on qualitative assessments for measuring risk may result in important projects not getting funded.

The Total Economic Impact™ of a Wireless E-Mail Deployment

by Ken Smiley, Jon Erickson, September 25, 2002

A Total Economic Impact™ analysis of the costs, benefits, flexibility and risk of deploying a typical wireless e-mail solution indicates that the solution will pay for itself within the first 12 to 14 months.

Estimating Risk of Flexibility Options

by Jon Erickson, January 9, 2002

Giga has long advocated that measuring the value of flexibility within technology investment must be done in conjunction measurement of direct benefits, direct costs and risk.

IT Trends: Operational Risk

by Jon Erickson, July 18, 2001

IT will begin to see an ever-increasing part of its time spent on quantifying the impact of risk around technology and incorporating it into an overall enterprise risk management strategy.

Measuring Intangibles in an Economic Downturn

by Jon Erickson, June 4, 2001

Giga argues that the recent economic downturn should not signal a retreat back to measuring the value of a company on the basis of its physical assets. A balance must be made between the accounting methods of the past and the assets that cannot be seen.

Adapting to Clinger-Cohen Must Be Done Sooner, Not Later

by Kazim Isfahani, Jon Erickson, May 11, 2001

We expect adherence to Clinger-Cohen to become mandatory in the next 12 to 18 months; thus, federal agencies must have the processes in place to achieve compliance by 2002.

Building Credit Risk Into Vendor Analysis

by Jon Erickson, May 10, 2001

While stocks may be a good first indicator of short-term viability, other financial instruments can better measure the likelihood that a company will not meet its obligations in the future, such as derivative markets and credit ratings.

Liquidity and Portfolio Optimization

by Jon Erickson, March 22, 2001

It is important to note, as in the case of measuring diversification and correlation, the ability of IT to invest in flexible options rests on the role of IT within the organization.