The application of advanced economic analysis techniques to the evaluation of network expansion alternatives

This paper presents advanced economic analysis techniques for comparing network expansion alternatives and providing cost justifications for new technology and network support staffing. Revenue requirements and internal rate of return analysis are applied to the problem of deciding which technical option(s) will best lead to the delivery of systems that both meet valid requirements for networking and drive the achievement of strategic business goals and objectives. The “Process Value Index” (PVI), a Total Quality Management (TQM)-based business process metric, is introduced and applied in case studies to identify and justify cost-optimized network solutions. This paper demonstrates the use of benefit/cost ratios, payback and breakeven based on PVI calculations and application of the TQM technique of Work Process Analysis