Business Cases: Two approaches for handling high initial technology costs
Conclusion: When executive decision makers review business cases and observe a ‘J' curve investment pattern, it generates immediate doubts regarding the project's value. On the other hand, ‘S' curves, which represent competitive advantage or increasing profit, generate enthusiastic responses. Unfortunately, too many IT infrastructure business cases are presented with ‘J' curve profiles due to high initial investment costs. In many cases projects with high initial costs and delayed profits can be legitimately restructured to reflect a better commercial outcome with forethought and strategy. Not every project can be transformed, but two methods of cost structuring and ROI analysis have demonstrated successful results.