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IT Project Portfolio: Solution and Cost Proposal 5

July 15, 2008

STAGE 5 – PROPOSED SOLUTION AND COSTING

After stage 4, the final touches can be made to the proposed solution. By now the functional and non-functional requirements have been agreed and negotiations can commence for costing and component manifesting.

A high-level work plan is established to create milestones and costing containers. These costing containers may include such things as training, implementation, transition, cutover, and/or build costs. At this stage, the costs are used for budgetary purposes, and final negotiations should always bring your costs down at the purchase stage. Many groups get themselves into trouble by negotiating feverously at this stage only to loose leverage due to the time it will take to get final approval.

Work should also be done at this stage to tighten up the component elements of your solution. Tasks should be given to the IT team in respect to further definitions and clarity on development and/or interfacing costs. When trying to interface a new system into an existing infrastructure, make sure you have estimated the learning curve component for your team to acclimate to the new system’s parameters and architectures. This is not the time to throw stones at the new kid, for we all live in the glass house. Use the “Improvise, Adapt, Overcome” mantra to get your team focused on getting the solution to work. Everybody is encouraged to make it work instead of finding every possible reason why it can’t

Also, nail down support costs for the initial rollout and ongoing support. Don’t forget to clarify how the solution will be maintained. If is maintained by the vendor, how does the vendor expect to support you? Is the solution a mission-critical solution? Is the vendor aware how its solution is going to be implemented?

Stage 5 Deliverables

  • Revised functional requirements.

  • Revised non-functional requirements.

  • Update to logical architecture.

  • Update to physical architecture.

  • Solution costing.

  • Support model and costing.

  • Input into the solution outline.

Stage 5 Outcomes

  • Rough draft of the solution outline and very high level costs (+/- 25%).

Stage 5 Duration

One to two weeks

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