Methodology and tool design for building return on investment models for it transformations

Abstract

For any IT transformation with significant investment, economic analysis is essential for justifying the risks and expenditures. Much cost modeling has been done for various types of IT transformations, each looks into the unique aspects of the concerned domains. This paper takes a different direction and proposes a general methodology named PANROI for quickly constructing ROI/TCO models to be used in the field. A declarative language, Excedo, is proposed for expressing the model logic and building the user interface. We present a case study on building an ROI model for cloud computing using the methodology and Excedo. © 2012 IEEE.