COM 331 - Chapter 10

COM 331 - Chapter 10 -...

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COM 331 – Chapter 10 Notes – Funding Information Systems Total Cost  of  Ownership  (TCO) Financial estimate designed to explicitly recognize the full life cycle  costs of IT assets. Include expenses that occur after the system is up  and running, but are necessary to maintain it in operation over its life  span.  p. 307 Business  Case Formal document, prepared and presented by the general or  functional manager sponsoring the project -provides rationale for pursuing the opportunity Objective: explain and provide evidence to convince the executive  team, typically during the budgeting process, that the initiative will pay  off and its funding is warranted -typically require:  IRR  (internal rate of return),  ROI  (return on  investment),  NPV  (net present value) -must make assumptions and arbitrary judgements to project  proponents p. 307 –  308 Limitations  of the  Business  Case -strictly based on fact require lots of assumptions that it becomes  based on fiction -overcome limitations through heuristics – simple rule that is good  enough to make decisions, recognizing that adjustments along the  way will be necessary  -this approach systematizes the re-evaluation of both the costs and  benefits during development - another approach – relax focus on fact-based business cases and  allow proponents of the project to ground their request to faith (beliefs  about market trends, customer expectations, competition, strategy)  and fear p. 308 Steering  Committee Brings together representatives from various functional areas, the  CEO, and key IS professionals who convene regularly to provide  guidance to the IS function and share the responsibility of aligning its  efforts with business strategy -business cases are usually presented to them
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This note was uploaded on 07/25/2011 for the course BUS 371 taught by Professor Franz during the Fall '10 term at University of Victoria.

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COM 331 - Chapter 10 -...

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