Why does the TCO approach allow Troon management to refresh its hardware at the optimal cost level?

2nd 2-3 pages Case study

Chapter 7 of your textbook, Managing and Using Information Systems: A Strategic Approach, provides an overview of the business of IT, organizational maturity, and IT funding models. Read Case Study 7-1, “Troon Golf,” on page 234 in the textbook and answer all three questions regarding the decision Troon Golf’s leadership made in implementing a TCO system:

  • Why does the TCO approach allow Troon management to refresh its hardware at the optimal cost level?
  • Why, in your opinion, were IT expenses spiraling out of control before the TCO system? What are examples of the hidden costs of operating and maintaining the hardware?
  • If you were the head of marketing for Troon, what benefit would you receive from Mr. Westmark’s decision to implement TCO?

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