Simple ROI frame work for an IT architecture

Advantages of an IT architecture and its ROI calculations

ROI Framework of an IT architecture

From the given advantages, the increased profitability network can be mapped as shown. Profitability can be increased in two ways: increase in revenue and decrease in costs. IT architecture allows new revenues to be created as well as protect the existing revenues by reducing the processing time. Decreases in the costs are maintained by reduced integration and increased reuse.The cost structure for an implementation is as follows. The costs associated for an IT Road map are mainly implementation, maintenance, operational, enhancement and contingency Costs.

 Costs Associated
Implementation Costs
Maintenance Costs
Operational Costs
Enhancement Costs
Contingency Costs

The ROI framework has mainly five steps:

  1. Calculating the benefits from the ROI framework- The actual calculations in terms of tangible and non-tangible benefits are done here.
  2. Estimating the cost associated- This provides the platform for the expenditures.
  3. Computing the initial, simple return- The initial return on the investment is calculated here.
  4. Assessing the cost scenario for the subsequent implementations- Subsequent versioning requires the actual assessment of the cost and expenditures.
  5. Keeping benefits intact, gauging the returns for the second and subsequent implementations- The subsequent iterations are taken into account in this.

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