Many executives of organizations need to be convinced that software is an asset and not an expense. IT managers need to be able to discuss capitalization in a way that will inspire appropriate budgetary support for IT project development. For this assignment, students will analyze an organization. In an effort to support the goal(s) of the organization, students will be tasked with an option to implement software off the shelf, customize purchased software, (re)develop software from scratch, or hire someone to rewrite software or make updates. Write a recommendation that includes the following components: An introduction, including an analysis of the problem. A discussion of the potential solutions, including criteria for evaluating potential solutions. A conclusion that describes how the recommendation supports the financial health of the association. Refer to the "IT Budget Calculations" document to learn about the organization. The chart will need to be completed with the appropriate values for each proposed solution. Criteria Weight Solution 1 Solution 2 Solution 3 Solution 4
Tie to Association
Mission and Goals 12%
Supplier Support 8%
Initial Cost 12%
Net Present Value 12%
Return on Investment 12%
Payback Period 12%
Realistic/Attainable 8%
Technology
Usable by Current 8%
Employees
Potential Employee
Support 8%
Ability to Be Fully
Functional in 6 Months 8%
Weighted Project
Scores 100%
For this portion of the assignment, you will need to:
Analyze at least four potential solutions to the problem.
Include build-your-own, purchased, and outsourced solutions.
When your analysis is complete, fill in the chart with the appropriate values for each of your proposed solutions.
Calculate the weighted project score for each potential solution.
Include your NPV/IRR/payback spreadsheet as an appendix to your report.
Use a discount rate of 11%.
These calculations will need to be submitted as an appendix to your recommendation.