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
 CONCLUSION:

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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