110499_TCO_and_ROI (3).docx - Running head RETURN ON...

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Running head: RETURN ON INVESTMENT (ROI) ANALYSIS IN HIT PLANNING 1 Return on Investment (ROI) Analysis in HIT Planning Institution Name Course Tutor Date
RETURN ON INVESTMENT (ROI) ANALYSIS IN HIT PLANNING 2 Return on Investment (ROI) Analysis in HIT Planning Total cost of ownership is a common term that is often used to measure, investigate, and explore spending and costs in an organization. This may be used to describe all of the related expenses such as maintenance and acquisition. An accurate TCO may prove quite important to an organization. It may be used by the management to help determine when to conduct replacement or the need to consider issues such as transitioning (Pearce, 2015). Managers ought to make sure that TCO is measured carefully. This is because misleading TCO can provide quite false insights regarding the cost, pricing and issues such as expenditure of the organizational assets (Arlotto et al., 2013). This may in turn lead to damaging financial decisions. To understand the study topic in a better manner, the essay attempts to determine the TCO for a strategic Information system investment (based on the profoma). The precise return on Investment (ROI) analysis is intended towards providing both the capital and the associated ongoing costs or rather the operational costs of a HIT program (Phillips & Phillips, 2005).

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