The KING of the project Dated

  To calculate the Return on investment of the project Dated

Before judging it like a success, one waits until the purpose of the project, once the aforementioned completed, appears like a new source of hard cash going beyond the simple hedging of the expenses of authorized investments.

To consider the budget initial and thus to judge opportunity of launching the aforementioned project it is to undertake a sufficiently concrete financial analysis as a preliminary in order to estimate the ROI.
According to the cases and the practices of work, one can lead this reflection by evaluating One , Rate off , or .
- One
What can one await investment?
- Misses off
Is that worth the blow to invest in-house?
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How long will it be necessary to wait before recovering the investment? In all the cases it is important to approach very close this value in order to launching the project in all serenity.
Not so easy. All the advantages are not expressed directly in monetary form.
Whatever the projects it will in one way or another be necessary to bring an answer to the question:
Which is the potential value of the competitive advantage?
Not easy to answer. One can then reverse it: What does one risk if one does not set up the project?
One can also decline it as follows:
Which are the gains for the users in terms of quality of decision making?
We will detail then favor for better estimating them:
Relevant speed of information access
Facility of information access
Facility to extract from new lesson
Generalization of the information access
…

  To reform the calculation of the Return on investment (RSI) (KING)

As of the beginnings of industrialization the calculation of the KING, initiated by the management of Dupont of Nemours, was already a precondition to any investment plan out of equipment of the firm. This approach does not have escaped with criticisms. While trusting only the calculation of the KING, the decision makers rather tend to privilege only the projects of which profitability is perceptible short-term.

It is from now on time to reform this exclusively financial way of calculating in order to allow the development of projects of which financial profitability is perceptible only longer-term.
Other interests like the qualitative contributions of the sustainable development or knowledge management more generally from now on will be taken into account in order to implement true plans for the future. The project Data is included in this category.
For those which are interested I develop this crucial question of the calculation of the KING in the book the effective project leader.

In complement of the KING, the calculation of the TCO

TCO Total off or Total costs of appropriation

The TCO Total off or Total price of appropriation considers for its calculation the major section of the costs induced directly and indirectly by the possession and the use of a hardware. To the purchase price is added all the expenses like the installation, the supports, the formation…

On the same subject:

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Copyright: Alain FERNANDEZ ©1998-2008- All rights reserved

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