All in Cost Analysis

More Thoughts on the Budget Sequester's Impact on Project Budgets

In A Project Manager’s Perspective on the Cost Impacts of the “Sequester” I suggested that an unintended consequence of the US government’s budget “Sequester” might be that some ongoing projects will end up costing more than originally planned because of the effect lengthening a project schedule can have on a project’s budget.
Gene L. Dodaro, Acting Comptroller General, U.S. Government Accountability Office (GAO) gave a presentation on November 2010 titled Acquisition Reform Challenges Facing Government. Referring to GAO’s strategic plan, Dodaro’s presentation addressed large-scale acquisitions as “targets of opportunity,” repeating the often-heard criticism that “… much of the government’s major investments have faced persistent cost and schedule growth.” His analysis is a very intelligent review of the challenges involved in reducing acquisition costs. Here I suggest an approach he doesn’t discuss but which is based on concepts he presents.
In September 2006 I published The Justification of Enterprise Web 2.0 Project Expenditures. It examined differences between the cost justification of current information systems compared with cost justification of older systems. It discussed how some of the rules for calculating and thinking about technology related costs have changed.
Jeremiah Owyang’s LiveBlog: What’s Wrong with the White Label Social Networking Industry?, especially if you read the comments, delivers a good snapshot of the gaps that still exist between product evangelism and the realities of implementing specialized online social networks.
I was interviewed yesterday by a Forrester Research staff member about how CIO’s (Chief information Officers) should approach the implementation of collaboration tools (click here for a list of blog posts related to “collaboration”). We talked about the usual adoption issues related to “web 2.0” applications within the enterprise.