Week 53 (20.4.08)

Learn

IT Drivers (Cost/Benefit Analysis) - AMA Module

IT Cost

1. Direct

• Hardware - Server, Network, Computers etc
• Software - Business Application, DBMS, Operating system license fee

2. Indirect

• Personnel - IT personnel, Programmer, Analyst, Third Party
• Downtime - System shutdown

IT Value/Benefits

1. Increase Revenue
2. Reduce Cost

Unlearn

Thought that IT takes up more of the cost only and less benefits can be seen. However, after studying through this IT module, I understand the value that IT can create for all the stakeholders ie customers, employee, business partner and company.

Relearn

IT can enable the program (eg Sales Force Automation) for the Value or Benefits, which I can apply as below in my work place.

1. Increase Revenue

• Expanded share of market
• New revenue streams
• Reduced Churn Rate
• Increased revenue per customer
• Less rebates given
• Increased price
• Less late payers

2. Reduce Cost

• Reduce cost of marketing and sales

- lower cost per lead

- increased lead to opportunity lead

- lower cost per sale

- increased opportunity to sales rate

- shorter sales cycle

• Reduce cost of inventory

- decreased number of inventory

- decreased cost of storage

• Reduce IT cost

- lower maintenance and support cost