Investing in an IT Project - Essay Example

Part of initiating an IT project is to perform a reality check, which is meant for determining whether the project makes sense or not. Upon checking, one gets the opportunity to conduct a feasibility study, of the IT project, which leads to sponsors developing interest in supporting the project; Feasibility study is therefore the key justification for investing in the IT project. However, most projects need to include a business case to convince the project sponsor in approving the project officially. The business case highlights the background information of the entire project (“Justifying a software development project,” 2006).
There is a need to justify investing in an IT project if at all, it emerges to make sense in the field of IT. In case it does not make sense, then one should look for other alternatives because you cannot automate everything. A feasibility study is therefore used to reveal this project justification, where it makes the project appear proactive and effective in tackling issues in the field of ITA feasibility study identifies project-associated risks, and the risk management efforts required. There are several things indicated in the feasibility study (“Justifying a software development project,” 2006). The first one is identifying potential implementation alternatives case things go contrary to popular opinion, there always exist asseverations for implementation. The second one is determining economic feasibility where the IT project should meet the question of whether it is of financial sense. Economic feasibility is determined by conducting a cost or benefit analysis that states the full costs of the project to its full financial benefits. If the benefits exceed the cost, the IT project defines to be more proactive and effective.
The third one is determining the technically feasible elite of the IT project. The real question that needs to be answered is whether technology can be built. To achieve this, an investigation should be done on the technologies suitable for the project. All technologies seem to work well on the marketing slide, but the main problem experienced is that of choice. It is therefore important to identify alternatives for each technology as well as their advantages and disadvantages (“Justifying a software development project,” 2006). Finally, we have operational feasibility where an IT project is not only required to make technical and economic sense, but also make operational sense as well. The basic question answered, in this case, is whether it is possible to support and maintain an IT project once in operational.
Many projects need to include a business case right before their sponsors approve them officially. This is because project sponsors get to know the clear background information of the project. It is this information that will therefore determine the actions to be taken by the sponsors toward the project. There are several issues highlighted in the background information. First, we have project objectives where every goal of the project, increases the sponsor’s morale to support the project. Second, we have critical assumptions and constraints for the project. The main issues revealed in this case are competence and benefits of the project, potential risks, problems experienced, and the actions taken in solving these problems. Finally, we have a financial analysis and budget estimate. Read More