Category Archives: IT Financial Management

IT financial management concepts, calculators, templates and methods for the managing the business of IT and technology. Includes financial strategies for CIO, procurement and contracting and financial analysis to support investment decisions.

Alternative Payment Systems Reducing the Cost of College

Alternative payment systems can reduce the cost of college for students, add convenience, and eliminate the cost of tuition payment systems. In many ways this should be a no-brainer for CFO’s and CIO’s. Yet roughly 50% of all colleges and universities … Continue reading

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Colleges May Soon Get Credit Card Surcharge Rights

Colleges may soon be able to charge a credit card surcharge on all credit card transactions according to a Wall Street Journal article. According to the article, it appears Visa and Mastercard may be ready to settle a year long … Continue reading

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Opportunity Cost: The Forgotten Cost of IT Investments

Every decision involves trade-offs between the costs and benefits of the available options. But most people forget to account for the opportunity cost of their choice. While most IT investment decision making relies on the traditional accounting cost to decide … Continue reading

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Sunk Cost Fallacy: The Irrational Barrier to Effective IT Investments

The irrational psychology of the sunk cost fallacy is a pervasive barrier to effective IT investment decision making and CIO success. Let’s say you spent $1M on a project the vendor says they need another $100K to complete it. Even … Continue reading

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Book Review: Making Technology Investments Profitable

Making Technology Investments Profitable: ROI Road Map from Business Case to Value Realization is a book about maximizing the true value of IT projects and technology investments. Unlike so many other books on CIO and IT success, Jack Keen focuses on the … Continue reading

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Value of Options in Software Vendor Contracts

Conventional wisdom on software vendor contracts is to lock in terms for longer periods of time to reduce risk and eliminate uncertainty. This is certainly sound advice but I don’t find it to be universally good advice without additional consideration. … Continue reading

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Network Modernization Strategy for FY13

Your FY13 budget will prove to be critical in setting you on the path for network modernization and implementing 10GBase-T, 40GB, 100GB and 4G LTE or 4G WiMAX. Equally important will be the roadmap you develop for implementing the changes … Continue reading

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