Learning Outcomes
The course concerns the development of a systematic methodology for the necessary subject of
investment appraisal and techno-economic analysis for a new project, as well as for the
conversion, improvement or extension of an existing one, with reference to the field of
Information and Communication Technologies (ICT).
More specifically, the course aims to:
- Help students to gain a supervisory overview of a techno-economic analysis, presenting its
basic principles and stages, as well as typical examples of its application.
- Analyze the major components of a techno-economic study, such as cost estimation, market,
competition, risk, etc.
- Present the basic principles of developing business plans in the high-tech market, and enable
their practical application; to present the financial figures and management accounting methods
for evaluating and valuing investments, as well as the basic principles of risk and risk analysis.
- Describe the main methodologies for forecasting demand and competition in the ICT market.
- Present principles and the most important methodologies applied for costing and pricing of
products and services.
Course Content
ii. Technoeconomic analysis – basic principles and stages
iii. Business plans: main principles, stages for the construction of successful business
plans.
iv. SWOT – PEST analyses.
v. Diffusion of products and services in markets – market competition
vi. User behaviour and evaluation of preferences
– Movement of users among providers –
substitution of technological generations etc.
vii. Investments, investment portfolio analysis portfolio
viii. Key economic quantities such as Net Present Value - NPV, Internal rate of return - IRR,
Project Payback Period, Investments, Operating Costs, Cash Flow, Income, Depreciation, etc.
ix. Risk analysis
x. Uncertainty in market parameters and cost parameters (market size, market share,
technology evolution, cost evolution)
xi. Costing of products and services. Costing methodologies and models for networks and
services.
xii. Historical cost and fully distributed costing.
Indirect, direct, common and associated cost,
Critical costing factors.
xiii. Pricing: Standards for pricing telecommunications services.
Pricing methodologies
