Determining the (TCO) or total cost of ownership for a strategic information system investment is a
critical part of the leaders’ role in using technology in a transforming way. The Return on Investment
Analysis depends upon reliable estimates of both the capital outlay and ongoing operational costs
associated with the initiative over a period of time. This Assignment focuses on outlining both the
capital and ongoing operational costs associated with a typical technology investment. You will
outline the costs and, as importantly, the assumptions that you used in deriving these financial
estimates.
To prepare:
Review the Pro Forma Explanation Material and HIT Program Pro Forma Template in the Learning
Resources.
The Assignment:
Write a 2Âpage APA style paper, addressing the following elements for the scenario that you chose in
Week 3. This will also be the scenario used to complete your Final Project. For this Assignment,
address the financial element of the project Charter used to plan the acquisition of an HIT solution for
the setting of choice. The financial analysis has two parts:
• Using the HIT Pro Forma Template provided in your Learning resources, complete the anticipated
capital and operating costs of the HIT solution that you are proposing in the Week 3 Assignment.
• Justify the assumptions that you used in your proforma.
Submit the entire project Charter inclusive of Week 3’s materials and Week 4’s HIT Pro Forma
Template and assumptions paper
