IT Projects: Findings and Opinions
According to Hopkins (2007), in the case of most IT projects and the case of most business projects in general, justifying an investment requires the demonstration of a mixture of immediate "savings, efficiency gains or the reuse of existing resources" and "simple forecasting methodology can then be used to calculate a potential return on investment (ROI) to determine a course of action." Forecasting methodology can often be extremely difficult to use in an accurate fashion regarding IT versus other types of projects. The environment is constantly changing and a major investment in one project which seems to be valuable might be rapidly undercut by the revelation of another type of technology which presents an even better cost saving. No matter how great the potential financial savings in theory, "calculating the potential value of unknown information is similar to a prospector digging for gold" (Hopkins 2007). Yet such digging is still needed to remain effective and competitive within the business environment.
Breaking up a project into multiple steps can be useful as "the value delivered by each step would be used to fund each subsequent step" which means "the project could not continue if any step did not...
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