- Fulfill business mandates and strategies, or other key requirements.
- Strategic alignment with the strategic plan and the major goals defined with it.
- Objectively calculate the business impact of proposed technology-based solutions at the enterprise level.
- Apply financial analysis to deliver a comprehensive assessment of costs, benefits, and performance metrics.
- Identify key risk considerations for a given solution and project the impact on business outcomes.
- Compare multiple proposals using a consistent alternatives analysis methodology.
ironSAGE Cost-Benefit Analysis provides multi-year projections based on the six evaluation factors, including: Mandate Fulfillment, Strategic Alignment, Impact Analysis, Financial Analysis, Initial Risk Consideration, and Alternatives Analysis.
Overcoming Challenges & Risks
Cost-Benefit Analysis is a key deliverable of ironSAGE’s business case and budget justification services. Organizations should initiate a Cost-Benefit Analysis whenever there is a need to adopt a new application platform, information system, or enabling-technology to achieve improved performance outcomes.
- Meeting the requirement of established business mandates.
- Making the case for how the proposed project will achieve performance goals defined within the strategic plan.
- Justifying the use of IT resources at the enterprise level.
- Delivering a comprehensive analysis of costs, benefits, and metrics including financial impact and quantitative value.
- Understanding project risks and the potential impact on desired outcomes.
- Applying a consistent method for conducting alternatives analysis and the selection of solution providers.
- Failure to fulfill business mandates and strategies.
- Acquired technology solutions don’t align with business priorities outline with the strategic plan.
- Higher operating cost associated with the inefficient application of technology resources and the inability to configure systems for optimal workflows and processes.
- Lack of transparency relating to technology costs, benefits, and impact on key performance metrics.
- Invalid assumptions of project risks and business impact.
- Inconsistent methods for conducting alternatives analysis with no compelling comparative value proposition to aid in vendor selection.
ironSAGE considers all of the key qualitative and quantitative factors when evaluating potential solutions, and provides clear decision guidance and recommendations on the best solution.
ironSAGE Cost-Benefit Analysis Service Offerings
ironSAGE Cost-Benefit, Business Case and ROI Analysis service offerings leverage a range of information sources to help organizations present a valid and objective business case for proposed technology investment. Sources of information may include: structured interview sessions with key internal and/or external stakeholders, vendor solution assessments, surveys, peer agency research, and feasibility studies. Typical activities include needs and benefits analysis, financial business case/cost benefit analysis, internal validation with executives and staff, and a technology adoption roadmap. Our Cost-Benefit Analysis service offerings include:
Cost Analysis – Quantifies business case cost estimates required for project development, implementation, and maintenance
Quantitative Benefit Analysis – Quantifies incremental cost savings, cost avoidance, and revenue optimization, as well as service delivery and regulatory savings for constituents.
Evaluation Factors – Rates the qualitative and quantitative factors that support and justify an IT project, including Statutory Fulfillment, Strategic Alignment, Impact Analysis, Financial Analysis, Initial Risk Consideration, and Alternatives Analysis.
Cost-Benefit Summary – Summarizes major categories of business case costs and quantitative and qualitative benefits.
Financial Analysis – Contains various measures of financial feasibility, including incremental and cumulative Net Cash Flow, Net Present Value (NPV), Breakeven Point, and Financial Return on Investment (ROI).
Selection Results – Provides a summary of project evaluation factors and financial analysis results.
Cost Mapping – Provides an estimated cost mapping from the business case costs (i.e., project costs plus non-project/operational costs) to the ITD costs (i.e., project costs) and then allows adjustments to the ITD costs.
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