Role of the IT Function: Costs, Analysis, Development. Based on materials by David Schuff. IT’s impact on the bottom line. Two things: Reduce costs Increase profit Increase revenue Everything else relates to one of these two things. Agree? Try it…. Paying for IT.
Based on materials by David Schuff
What is the role of the “chargeback” in all of this?
The business analysts
The development team
Feasibility and Planning
NPV = (-20000)(1.05)-0 + (5000)(1.05)-1 + (7500)(1.05)-2 + (7500)(1.05)-3 = -20000 + 4761.91 + 6802.72 + 6478.78 = -1956.59So you would lose $1956.59on this project!
Formula for NPV: SFV(1+i)-n
NPV = (E(Xyear1))(1.05)-0 + (E(Xyear2))(1.05)-1 + (E(Xyear3))(1.05)-2 + … =