What costs are considered in the Total Cost of Ownership (TCO) by a Product Owner?

The Total Cost of Ownership (TCO) is an essential concept that encompasses all investments related to a product throughout its entire lifecycle. This includes not only the costs associated with conception, development, and delivery but also the ongoing expenses involved in operating and maintaining the product once it is live in the marketplace.

When considering TCO, a Product Owner must look at the big picture of costs. This means evaluating not only the initial investment required to bring a product to market but also the expenses related to its ongoing operation, updates, training for users, and maintenance. Including all these factors allows for a more accurate understanding of the overall financial commitment required for the product.

In contrast, focusing solely on development and delivery overlooks important future costs that can significantly impact the profitability and success of the product. Furthermore, concentrating only on operational costs post-launch does not account for the initial investment needed to create the product or ongoing maintenance costs. Exclusively considering costs related to marketing and sales also misses the broader financial picture, as these are just a part of the overall investments necessary for the product's lifecycle.

By recognizing that TCO includes all investments for conception, development, operation, and maintenance, a Product Owner can make more informed decisions and better prioritize features and initiatives that align with