Saturday, December 7, 2013

View of Total Cost of a Project from an IT and user standpoint

When viewing total project costs, all expenses must be considered:

From the standpoint of planning, the projected life-cycle cost of the project represent the costs of the 2009 through 2018 cash flow:

The management should therefore view the total costs of an IT-lead investment as follows:
Business Executive costs for modernization project = $683.4 million
 I.T. Executive costs of modernization                         = $  22.3 million

The merits of an I.T. investment must be therefore judged primarily by operating executives primarily will the I.T. executive will be evaluated only on the quality and performance of 3.3% of expenses.

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