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level e-government initiatives (Meskell, 2003).
It is based on a log-linear regression analysis
of 16 actual cost and benefit data pairs. The 16
data pairs came from a database of 75 e-govern-
ment initiatives. Only 21% of the e-government
initiatives reported cost and benefit pairs. Others
reported only costs or benefits, or only qualita-
tive results. Valid cost data from eight federal
enterprise architecture initiatives were combined
with the e-government benefit model based on this
log-linear equation (Hite, 2002). Then, benefit to
cost ratio, return on investment, net present value,
breakeven point, and real options were estimated
for eight federal enterprise architecture initiatives
shown in Table 4.
The return on investment data in Table 4 were
normalized and illustrated graphically in Figure
4. The cost data in Table 4 were taken from a
database of 45 federal enterprise architecture
initiatives (Hite, 2002). As shown in Figure 4,
the International Trade Administration had very
low costs, and thus has the capability to yield a
high return on investment. The federal agencies in
Figure 4 have moderate costs and the potential to
yield good results as well. There are some enter-
prise architecture initiatives with higher costs than
those illustrated here. Some have yielded good,
mediocre, and even no results. Once again, how-
ever, Table 4 demonstrates that real options may
Table 4. Estimated cost and benefit data from 8 federal-level enterprise architecture initiatives
agency
costs
Benefits
B/cr
roI%
nPV
Breakeven
roa
Ita
$120,000
$5,869,907
49:1
4,792%
$4,962,725
1 Mos.
$5,776,469
DLsa
$194,000
$5,880,011
30:1
2,931%
$4,897,474
2 Mos.
$5,729,052
fra
$194,000
$5,880,011
30:1
2,931%
$4,897,474
2 Mos.
$5,729,052
fsa
$200,000
$5,880,831
29:1
2,840%
$4,892,184
2 Mos.
$5,725,215
BoP
$276,000
$5,891,227
21:1
2,035%
$4,825,186
3 Mos.
$5,676,759
cB
$285,000
$5,892,459
21:1
1,968%
$4,817,253
4 Mos.
$5,671,042
Dcaa
$358,000
$5,902,465
16:1
1,549%
$4,752,917
5 Mos.
$5,624,860
oPm
$400,000
$5,908,229
15:1
1,377%
$4,715,908
5 Mos.
$5,598,466
average
$253,375
$5,888,142
27:1
2,553%
$4,845,140
3 Mos.
$5,691,364
Figure 4. Estimated costs and return on investment of eight federal-level enterprise architecture initia-
tives
1.00
0.80
0.60
Costs
ROI%
0.40
0.20
0.00
ITA
DLSA
FRA
FSA
BoP
CB
DCAA
OPM
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