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.
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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 + … =