ROI, Build-Buy-Extend and Model Routing
Planning also tests ROI criteria, total cost of ownership, ROI analysis, build versus buy versus extend decisions, and model routing choices.
How to study for Microsoft AB-100
Treat each item as an architecture decision: identify the business process, select the Microsoft AI pattern, then add ALM, telemetry, security, responsible AI, and governance controls.
Core concepts
Concept 1
ROI analysis should connect cost, benefit, adoption, productivity, risk reduction, quality, and business-process impact.
Exam cue: Use TCO when evaluating cost beyond licenses or model calls.
Concept 2
Build, buy, or extend decisions compare customization need, time to value, platform fit, operational ownership, security, and integration complexity.
Exam cue: Use build-buy-extend when deciding whether to customize, adopt an existing feature, or combine components.
Concept 3
Model routers route requests to suitable models based on task, cost, latency, quality, compliance, or availability.
Exam cue: Use model routing when different requests need different model capabilities or cost profiles.
Risk pitfalls and guardrails
Counting only model token cost and ignoring implementation and operating costs.
Guardrail: Avoid defaulting to custom agents, skipping grounding-data checks, or treating prompts and connectors as outside the release process.
Building custom AI when an existing Microsoft capability meets the requirement.
Guardrail: Avoid defaulting to custom agents, skipping grounding-data checks, or treating prompts and connectors as outside the release process.
Routing every request to the most capable model regardless of latency or cost.
Guardrail: Avoid defaulting to custom agents, skipping grounding-data checks, or treating prompts and connectors as outside the release process.
Memory anchors
ROI Criteria
ROI criteria define the measurable benefits and costs used to judge AI value.
Total Cost of Ownership
TCO includes build, license, integration, operations, monitoring, governance, and support costs.
Build Decision
A build decision favors custom development when requirements cannot be met by existing capabilities.
Buy Decision
A buy decision favors existing products or services for faster value and lower custom ownership.
Extend Decision
An extend decision customizes or integrates existing capabilities to meet business needs.
Model Router
A model router sends each request to the model best suited to its task, constraints, and cost profile.
Business Outcome
A business outcome is the measurable process or performance result expected from the AI solution.
Value Hypothesis
A value hypothesis states how the AI solution will create measurable benefit.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
An AI case-summary solution costs $300,000 to implement and $120,000 per year to operate. It is expected to save $260,000 per year for three years. Ignoring discounting, what is the three-year net benefit?
A proposal compares two agents using only model-token charges. Which additional costs belong in total cost of ownership?
Answer all questions to submit.
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Move forward only after this module is stable.
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