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Info Systems Ch. 7

Wade Ch. 7

TermDefinition
Activity-Based Costing (ABC) Calculates costs by counting the actual activities that go into making a specific product or delivering a specific service.
Allocation Funding Method Recovers costs based on something other than usage - such as revenues, login accounts, or number of employees.
Balanced Scorecard Focuses attention on the org. value drivers - which include, but are not limited to, financial performance.
Business Case A structured document that lays out all the relevant information needed to make a go/ no go decision.
Business-IT Maturity Model A useful tool for understanding the differences in capabilities.
Business technology strategist The strategic business leader who uses tech as the core tool in creating competitive advantage and aligning business and IT strategies.
Chargeback Funding Method Charging individuals, departments, or business units based on actual usage and cost.
CIO The senior most executive in the enterprise responsible for tech. vision and leadership for designing, developing, implementing, and managing IT initiatives for the enterprise to operate effectively in a constantly changing marketplace.
Corporate Budget Funding Method The costs fall to the corporate bottom line rather than levying charges on specific users or business units.
Dashboard Provides a snapshot of metrics at any given point in time.
Economic Value Added (EVA) Accounts for opportunity costs of capital to measure true economic profit and revalues historical costs to give an accurate picture of the true market value of assets.
IT Portfolio Mgmt. "Evaluating new and existing applications collectively on an ongoing basis to determine which applications provide value to the business in order to support decisions to replace, retire, or further invest in applications across the enterprise.
Net Present Value (NPV) Calculated by discounting the costs and benefits for each year of the system's lifetime using the present value factor calculated each year as 1(1+discount rate) year.
Return on Investment (ROI) Percentage rate that measures the relationship between the amount the business gets back from an investment and the amount invested.
Total Cost of Ownership (TCO) Calculation that includes all costs associated with tech. support, admin., training, and system retirement.
Created by: sfrase
 

 



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