Before embarking on a new project, managers need to carefully consider and evaluate all the possible costs that...
could be incurred and revenue that could be generated once the project is completed. The potential costs include development and operational costs, non-recurring costs (e.g., capital investment, research, procurement and database preparation costs) and recurring costs (e.g., leases, salaries and security costs). Besides tangible revenue, the potential benefits include intangible perks such as improved decision making, cost reductions and increased sales.
What is a cost benefit analysis?
A cost-benefit analysis (CBA) is one analytical tool that can help project managers assess the advantages and disadvantages of moving forward with a business proposal or project. By using a cost-benefit analysis template, IT organizations can suss out quantitative and monetary estimates to determine whether to pursue an initiative, tweak it or abandon it completely.
Cost-benefit analysis examples
SearchCIO.com searched the Web for free cost-benefit analysis templates that could tally planned project costs and calculate key performance metrics, such as ROI, net-present value internal rate of return and payback periods. Using these indicators, IT organizations can make more informed business decisions about where to invest their teams' energies, time and precious budget dollars.
SOURCE: U.S. Department of Housing and Urban Development
OFFERING: This cost-benefit analysis template can be downloaded as a Microsoft Word document and edited to fit your IT organization's needs. The document is organized like a project proposal and offers an overview of the essential elements of a cost-benefit analysis, including project scope, methodologies and formulas for calculating incurred costs vs. benefits gained.
SOURCE: Regis University
OFFERING: This Microsoft Excel cost-benefit analysis template from Regis University in Denver, Colo., helps users calculate financial spending over the course of several fiscal years. The template takes into account discounts, benefits, net-present value and the internal rate of return, complete with instructions for use and interpretation of your IT organization's results.
SOURCE: Connecticut Department of Administrative Services (DAS)
OFFERING: This set of cost-benefit analysis tools, compiled by the Bureau of Enterprise Systems and Technology, which is a department within DAS, contains a cost-benefit analysis template for every IT option under consideration; checklists that detail the specific costs, benefits and other criteria that should be considered; a glossary of terms and more.
SOURCE: University of Pennsylvania
OFFERING: This cost-benefit analysis template, which comes in PDF format, is customized for IT, particularly around projects pertaining to new IT systems or projects. This template aims to provide cost and benefit information that will help determine which alternative approaches to these IT decisions are the most viable. Helpful text is highlighted or italicized.
SOURCE: U.S. Department of Veterans Affairs
OFFERING: This Word document template not only contains space for a cost-benefit analysis, but also sections on a project scope statement, assumptions and constraints, and descriptions of alternative approaches to a given project.
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