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Method for determining total cost of ownership

  • US 7,020,621 B1
  • Filed: 10/06/2000
  • Issued: 03/28/2006
  • Est. Priority Date: 10/06/1999
  • Status: Expired due to Term
First Claim
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1. A method for determining a cost for each user of an information technology system, the method comprising:

  • obtaining base costs;

    obtaining ongoing direct costs;

    obtaining ongoing indirect costs;

    gathering information relating to user profiles and organizational characteristics;

    inputting said costs and information into a computer and calculating by the computer the cost for each user and a plurality of appraisal metrics;

    wherein the appraisal metrics include (i) financial perspective metrics determined from the obtained costs, (ii) operational effectiveness and efficiency metrics determined from the gathered information, and (iii) infrastructure and evolution perspective metrics determined from the gathered information;

    identifying interrelationship profiles between the financial perspective metrics and related operational effectiveness and efficiency metrics and related infrastructure and evolution perspective metrics;

    assigning each of said appraisal metrics to correspond to an information technology organizational function category, wherein the organizational function category comprises service management;

    systems management;

    service planning and change management;

    selecting an information technology organizational function category; and

    reporting both the financial and non-financial appraisal metrics corresponding only to the selected category.

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