BEST: Cost/Benefits Analysis Tools Now Available

Cost/Benefit Analysis Tools

 

DOIT is making available basic Cost/Benefit Analysis (CBA) tools to assist IT managers in their analysis prior to implementing any IT project. The tools will help demonstrate that the most cost-effective alternative was chosen based on tangible and intangible, quantitative and qualitative criteria.

 

As you look through these tools, please feel free to forward questions, comments and suggestions to charles.hoadley@ct.gov .

 

Introduction – Power Point Presentation (PowerPoint, 344 KB) 

This presentation was made to DOIT IT Managers in December 2006 and January 2007.  Key points are the System Development Methodology project phases, basic CBA tools and techniques and the “Go/No Go” decision points that arise as a project proceeds.

 

DOIT Cost/Benefit Analysis Flow Chart (Visio, 75 KB) 

The Flow Chart shows the components of a CBA in the early phases of a comprehensive System Development Methodology.

 

Cost/Benefit Analysis Forms (Excel, 25.5 KB) 

This spreadsheet contains form templates for each IT alternative considered.

 

System Life Cost Profile - status quo or alternative

Systems Life Benefits Profile - status quo or alternative

Systems Life Costs/Benefits Profile - status quo or alternative

Sensitivity/Risk Analysis-(Placeholder)

Calculation of Net Present Value-(Placeholder)

Comparison of Alternatives

 

Repository of Cost/Benefit Analysis Checklists(Excel, 77KB)

Use these check lists as you fill out each of the CBA forms above.  The lists provide specific costs, benefits and other criteria that you may need to consider.  Each CBA will be different and you will not need to include every example on the list, but you will find them helpful to get started.

 

Systems and Financing Costs

Non-Recurring Costs

Recurring Costs

Costs to Users & Risk Factors

Benefits 1 - Quantitative and Qualitative

Benefits 2 - Quantitative and Qualitative

Urgency Criteria

Strategic Criteria

External Effects

 

General Ledger Account Codes, Descriptions (Excel, 40KB)

To facilitate communications with the business and financial managers it will help to relate various costs to how they are described in agency financial reports and budgets.  The G/L codes and account descriptions are provided as examples and they may vary from those used in your agency

 

Chartfields (Excel, 41KB)

Draft example of DOIT Charge Codes, Distribution Codes, Pools and Products.

 

Glossary of Terms (Word, 38KB)

The glossary provides working definitions of the terms most commonly used in preparing the CBA.