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LSPERF06-BP02 Perform a total cost of ownership analysis - Life Sciences Lens
Implementation guidance

LSPERF06-BP02 Perform a total cost of ownership analysis

Calculate complete TCO incorporating hardware acquisition costs, software licensing, power consumption, cooling requirements, physical footprint, specialized expertise needs, and expected hardware lifespan, while quantifying research productivity improvements to determine true value beyond initial purchase price.

Desired outcome: Develop comprehensive TCO analysis including direct and indirect costs while quantifying research productivity gains to reveal true value and inform strategic technology investments beyond purchase price alone.

Level of risk exposed if this best practice is not established: Medium

Implementation guidance

Develop financial models that capture direct and indirect infrastructure expenses. Complete cost visibility blocks unexpected budget impacts and enables accurate comparison between technology options.

Evaluate costs across the entire useful lifespan of research infrastructure. Lifecycle analysis reveals the true long-term financial impact of technology decisions beyond initial acquisition costs.

Measure how infrastructure investments translate to research output improvements. Productivity quantification enables value-based decisions by connecting technology costs to scientific outcomes.

Integrate cost and benefit data to calculate true return on infrastructure investment. Holistic value analysis balances financial considerations with research advancement to optimize technology investment decisions.

Monitor ongoing value delivery from infrastructure investments after deployment. Continuous tracking verifies that technologies deliver expected benefits and informs future procurement decisions with actual performance data.

Implementation steps

  1. Document costs including direct expenses, operational costs, and staffing requirements.

  2. Develop financial models with depreciation schedules and projected maintenance costs.

  3. Establish research metrics with productivity indicators and improvement forecasts.

  4. Create value assessments with cost-per-output calculations and comparison frameworks.

  5. Implement value tracking with ongoing measurement and periodic TCO reassessment.