Resources · 70
Digital services: compare total cost and cost per outcome
Include migration, operation, quality, support and exit in an explicit comparison.
· 2 min
What this guide helps achieve
- Define a useful unit
- List cost components
- Compare scenarios
- Include exit and reconcile
Quick check
- Is the useful outcome defined consistently?
- Which costs remain unknown?
- Does the scenario include commitments and exit?
Step-by-step method
- 01
Define a useful unit
Choose a service-related unit: completed order, handled case or active user. Describe required quality and availability. Cheap requests can conceal unnecessary calls and manual recovery.
Deliverable: business-unit definition.
- 02
List cost components
Separate initial, recurring and variable costs. Include integration, migration, training, monitoring, support, storage, transfers and maintenance. Record source and date for assumptions without inventing universal prices.
Deliverable: cost register.
- 03
Compare scenarios
Calculate a baseline, increased volume and reduced demand on the same horizon. Review minimum commitments and tiers. Retain unknown components instead of silently treating them as zero.
Deliverable: scenarios and sensitivity.
- 04
Include exit and reconcile
Estimate export, replacement, transition and necessary retention. Compare assumptions with invoices and actual service volume. Explain differences by volume, price, quality or scope, then reassess the decision.
Deliverable: reconciliation and dated decision.
Reusable worksheet
Complete with your authorised observations. These fields are a working template, not observed results.
| Field | Information to record |
|---|---|
| Unit | Useful outcome, quality and period |
| Component | Fixed or variable, source, date and assumption |
| Scenario | Volume, commitment, exit and unknowns |
Worked example
Illustrative situation
Fictional example: a service charges little per request but often requires manual recovery.
Decision and expected evidence
The team measures cost per correctly completed case, includes recovery time and tests a volume scenario before committing.
Distinguish the mechanisms
| Mechanism | Purpose | Check or limitation |
|---|---|---|
| Advertised price | Understand a billing unit | May exclude integration and operation |
| Total cost | Compare services on a common horizon | Depends on explicit components and assumptions |
Management indicators
| Indicator | What it measures | First action |
|---|---|---|
| Cost per useful outcome | Included costs divided by conforming outcomes | Document numerator and denominator |
| Forecast/actual difference | Cost difference on comparable scope | Explain volume, price and recovery |
Common pitfalls
- Treat unknown costs as zero
- Compare offers on different horizons
Frequently asked questions
Is there a standard cost per user?
No: scope, volume, availability and the user definition change the calculation. Use documented components.
Does an unknown cost equal zero?
No. Record the unknown, an owner and, where useful, a justified range.
Is unit cost enough to choose?
No. Compare quality, risk, continuity and exit capability: services may deliver different outcomes.
Official references
References consulted: . The method and worksheet propose checks to adapt to your context; they do not constitute certification.
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