Popular Blog Posts on The Project Shrink

25 Sure-fire Ways To Motivate Your Team Members

23 Powerful Tips for Working in Multi-Cultural Teams

Total Cost Of Ownership

It's so nice to talk about new ways of doing business, it's so enlightening to discuss neat futures for an application, why spoil the fun with numbers? Simple. Because you have to pay. Most businesses today still have to make a profit, so 'cost' is an issue.

Why then this 'total cost of ownership'? Again, simple. Because a lot of times only part of the cost is considered, and after a while the brown stuff hits the fan; unexpected bills turn their ugly heads up. If I learned one thing in all these years, it's that managers never like unexpected things, especially the ones of the paying kind.

When a company decides it's time for some information system, normally someone is assigned to fill in the answer to the urging question: which system? I assume, you are that one, the poor sucker responsible for pushing the car up onto the mountain.

From day one, you lay down this issue of cost. From day one you should make everyone aware you're going for the full Monty, the whole enchilada, the total cost. If you tell a business manager software will cost $10,000, he will assume that's what he has to pay in the end. You will assume he knows you're talking about just the software licenses, and not about hardware and infrastructure, and not even beginning to top the subject on implementation cost.

The first day you have no clue about the cost. At least you don't have a clue about the amount. You do know buying and implementing software will have several components that make up the cost. You know you need something it runs on, you know you need some programmer to interface to different systems. They don't.

By laying down all the cards from the start, you avoid surprises. You will get valuable helping hands from the managers if you tell them what your questions are from day one. You will be amazed.

And if you aren't sure, you do know, after finishing this tutorial, you can rest assure. You will be able to make a good and informed impression on your first date with the one with the wallet.

  • Mummy
    Thanks for the tips..I like the caption "Projects are about humans..Deal with it"..yeah its true..
    annualcreditreport
blog comments powered by Disqus