Cost & Value Analysis

Learning objectives

• Distinguish capital, operating, and hidden costs
• Estimate the value of improvements
• Use simple ROI thinking

The full cost picture

• Capital costs: hardware, licenses, one-time builds.
• Operating costs: subscriptions, hosting, support.
• Hidden costs: downtime, training, maintenance effort.

The hidden costs often exceed the visible ones. A cheap system that fails monthly is expensive.

Value in context

Value is more than cost savings: it includes speed to market, reduced risk, and staff productivity. Capture these qualitatively when they cannot be quantified precisely.

Simple ROI framing

ROI = (value delivered - total cost) / total cost

Key takeaways

• Include hidden costs in every comparison.
• Value spans savings, speed, risk, and productivity.
• Keep ROI framing simple so decisions stay transparent.