The new approach to TCO for digital commerce - eBook (with abstract)
| The new approach to TCO for digital commerce - eBook (with abstract) | |
|---|---|
| Published By | [[MACH Alliance]] |
| Publish Date | May, 2023 |
| Authors | Unknown |
| Topics | Costs and profitability |
| Statistics | |
| Article Size | words |
| Diagrams | Yes |
| Downloadable Version | Yes |
| Reviewers | |
| Page Owner | Nikolay Sidelnikov |
| Summary Author | Nikolay Sidelnikov |
Abstract
The eBook "The new approach to TCO for digital commerce" published by MACH alliance addresses the limitations of traditional TCO calculations in capturing the true costs and value of technology investments in a world of constant change. Authors develop the theses of their predecessors on the importance of taking into account long-term dynamics when analyzing TCO for digital commerce solutions.
(WARNING) This eBook is a half-marketing material, since it pays a lot of attention to selling some brand names. Please, be critical. At the same time, B2B Experts community emphasizes that "marketing scars" do not devalue the analytical work done by the authors.
The content:
* What is TCO? * Standard measures of TCO for composable commerce ** TCO part 1: Total (Scope) ** TCO part 2: Cost ** TCO part 3: (of) Ownership * Technical debt: The hidden costs of traditional platforms ** Business impact of technical debt * Modern digital commerce: Additional TCO evaluation metrics ** TCC: Total cost of change ** TSP: Total spend productivity ** Bringing TCC and TSP together * The benefits of a modern approach to digital commerce ** Growth enablement ** Cost optimization ** Risk reduction * Next steps * About * Appendix: Cost comparison of traditional & modern commerce solutions
Full article text: https://machalliance.org/insights/the-new-approach-to-tco-for-digital-commerce
Subscribe to B2B Experts Digest
Read more on this topic
1. In the article The Most Expensive Problem in Digital Commerce: The Financial Aspect of Adaptability (with abstract) (Virto Commerce, 2022) the limitations of traditional TCO calculations in a reality of constant change are explained. A new TCO component "Cost of innovation" (later renamed by MACH Alliance to "Cost of changes") is introduced. Author explains, why this component, on one hand, is little understood by business, and, on the other hand, is often turns out to be the main problem leading to the impossibility of continuing the development of a solution and subsequent replacement of the platform.
2. The article The Craft Of E-Commerce Budgeting: Beyond The Total Cost Of Ownership (with abstract) (Forbes, 2023) gives a more concentrated high-level overview of the TCO structure, that includes the element "Cost of innovation" (renamed by MACH Alliance to "Cost of changes"). The article also gives some insights on TCO management.