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| Preface | |
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| List of Tables and Figures | |
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| Introduction to Information Technology Investment Decision-Making Methodology | |
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| Introduction to Information Technology Investment Decision-Making | |
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| Introduction | |
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| Types of IT Investment Decision-Making Problems | |
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| What are IT Investment and Decision-Making Methodologies? | |
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| Limitations of Methodologies | |
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| Why Study IT Investment and Decision-Making Methodologies? | |
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| Organizational Strategic Planning in IT Investment Decision | |
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| How This Book is Organized to Help You Learn | |
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| Summary | |
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| Needs Analysis and Alternative Information Technology Investment Strategies | |
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| Introduction | |
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| What is Needs Analysis? | |
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| Determining IT Processing Capacities and Specifications | |
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| Alternative IT Investment Strategies | |
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| What is IT Outsourcing? | |
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| An IT outsourcing strategy | |
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| Final comment on IT outsourcing | |
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| Summary | |
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| Measuring Information Technology Investment Performance | |
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| Introduction | |
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| The Economics of Information | |
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| Examples of economic theories of information | |
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| Why Measure IT Performance? | |
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| Measures of IT Business Value | |
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| Financial Performance Measures of IT | |
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| Business performance measures of IT | |
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| Strategic performance measures of IT | |
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| Costs of IT | |
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| Measures of IT effectiveness value | |
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| Measures of IT efficiency value | |
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| Summary | |
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| Financial Information Technology Investment Methods | |
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| Basic Financial Methods | |
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| Introduction | |
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| What are the Basic Financial Methods? | |
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| What is Breakeven Analysis? | |
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| A statistical approach to non-quantifiable benefits | |
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| What is Payback Period Methodology? | |
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| What is Accounting Rate of Return Methodology? | |
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| Summary | |
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| Other Financial Methodologies | |
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| Introduction | |
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| What Types of Methodologies Support IT Investment Decision-Making? | |
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| Financial techniques for IT investment decision-making | |
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| Operations research/management science techniques for IT investment decision-making | |
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| Techniques specifically designed for IT investment decision-making | |
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| Other techniques for IT investment decision-making | |
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| What is Present Value Analysis Methodology? | |
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| Net present value analysis methodology | |
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| Computer-based solutions | |
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| Unequal investment sizes | |
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| Unequal investment lives | |
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| What is Return on Investment Methodology? | |
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| ROI strategy for enterprise resource planning systems | |
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| What is Internal Rate of Return? | |
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| Computer-based solutions | |
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| A word about cash flows | |
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| Summary | |
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| Cost/Benefit Analysis | |
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| Introduction | |
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| What is Cost/Benefit Analysis? | |
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| Define problem | |
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| Identification and quantification of cost and benefit | |
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| Compare alternatives | |
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| Sensitivity analysis | |
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| What is Cost/Effectiveness Analysis? | |
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| Summary | |
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| Multi-Criteria Information Technology Decision-Making Methods | |
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| Critical Success Factors, Delphi Method and the Balanced Scorecard Method | |
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| Introduction | |
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| What are Critical Success Factors? | |
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| What is the Delphi Method? | |
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| What is the Balanced Scorecard Method? | |
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| Balanced scorecard components | |
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| Illustration of the balanced scorecard method | |
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| Final word on balanced scorecards | |
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| Summary | |
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| Multi-Factor Scoring Methods and the Analytic Hierarchy Process | |
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| Introduction | |
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| What are Multi-Factor Scoring Methods? | |
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| Types of multi-factor scoring methods | |
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| Summary of multi-factor scoring methods solution procedures | |
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| Sensitivity analysis of multi-factor scoring methods | |
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| Spreadsheet and computer solutions | |
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| What is the Analytic Hierarchy Process? | |
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| The AHP procedure | |
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| Summary of AHP solution procedure | |
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| Spreadsheet and computer solutions | |
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| Summary | |
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| Decision Analysis and Multi-Objective Programming Methods | |
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| Introduction | |
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| What is Decision Theory? | |
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| Decision theory problem/model elements | |
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| Types of decision environments | |
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| Decision Theory Formulation and Solution Methodologies | |
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| A decision theory problem/model formulation Procedure | |
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| Decision-Making Under Certainly | |
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| Maximax criterion | |
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| Maximin criterion | |
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| Decision-Making Under Risk | |
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| Origin of probabilities | |
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| Expected value criterion | |
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| Expected opportunity loss criterion | |
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| Decision-Making Under Uncertainty | |
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| Laplace criterion | |
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| Maximin criterion | |
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| Maximax criterion | |
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| Hurwicz criterion | |
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| Minimax criterion | |
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| Multi-Objective Programming Methodology | |
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| What is Goal Programming? | |
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| Goal programming problem/model elements | |
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| Goal Programming Problem/Model Formulation | |
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| GP problem/model formulation procedure | |
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| GP problem/model formulation problems | |
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| Computer-based solutions for goal programming | |
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| Goal Programming Complications and Model Assumptions | |
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| GP complications | |
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| GP model assumptions | |
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| Summary | |
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| Other Information Technology Investment Methods | |
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| Benchmarking Techniques and Game Theory | |
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| Introduction | |
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| What is Benchmarking? | |
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| A benchmarking procedure | |
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| A benchmarking methodology: Gap analysis | |
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| What is Game Theory? | |
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| Basic structure of game theory problem/model | |
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| Objectives and assumptions | |
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| Game theory problem/model formulation procedure | |
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| Solution Procedures for Game Theory Problems | |
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| Rational choice method: A saddle point solution | |
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| The minimax solution method | |
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| A minimax solution for a mixed strategy problem | |
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| A computer-based solution for a mixed strategy problem | |
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| Summary | |
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| Investment Portfolio Methodologies | |
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| Introduction | |
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| What are Investment Portfolio Methodologies? | |
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| Ward's Portfolio Approach | |
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| Evaluating individual investments | |
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| Setting priorities | |
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| Investment Mapping Methodology | |
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| Mapping the investment portfolio | |
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| Evaluating IT investments | |
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| Managing benefits | |
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| Other Investment Portfolio Methodologies | |
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| Summary | |
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| Value Analysis and Benefit/Risk Methodologies | |
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| Introduction | |
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| What is Value Analysis Methodology? | |
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| What is Benefit/Risk Analysis Methodology? | |
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| Summary | |
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| Implementing IT Decision-Making | |
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| Research Suggestions on Implementing IT Investment Methodology | |
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| Introduction | |
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| Organizational Impact of Information Technology Investment | |
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| Previous research on IT's impact on organizations | |
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| Measures of IT investment | |
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| Organizational impact of IT investment | |
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| Understanding Value and Instinct in IT Investment Decisions | |
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| Determining what's important | |
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| Defining value in IT investment | |
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| The role of intuition | |
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| Making the Best of IT Investment | |
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| IT investments: Goal and problem | |
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| Managerial causes | |
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| Strategies to solve the paradox | |
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| Summary | |
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| Implementing the Outsource or Insource Decision | |
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| Introduction | |
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| What is Outsourcing? | |
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| Why Use Outsourcing? | |
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| Why Use Insourcing? | |
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| Strategic Planning with Outsourcing and Insourcing | |
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| Outsourcing Methodologies | |
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| Outsourcing evaluation framework | |
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| Cost/benefit analysis | |
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| Critical success factors | |
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| Investment portfolio methodologies | |
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| Other methodologies | |
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| Post Outsourcing Decision Considerations | |
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| Service level agreement | |
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| Summary | |
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| Epilogue: The Costs of Not Making the Right Information Technology Decision (and Strategies on How to Avoid Them) | |
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| Macro Economic View | |
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| Micro Economic View | |
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| Strategies for Making the Right IT Investment Decisions and Avoiding IT Costs | |
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| "So What's the Good News?" | |
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| Index | |