Cost-Benefit Analysis

Purpose

Evaluate technology investments through ROI, TCO, break-even, and NPV analysis to support data-driven decision-making. Covers financial modeling, sensitivity analysis, strategic alignment, and stakeholder communication.

Framework and Methodology

Analysis Framework

The cost-benefit methodology follows five phases:

Phase 1: Scope definition
  - Define investment boundaries.
  - Identify alternatives (including do-nothing).
  - Set time horizon (1, 3, 5 years).