This document discusses various costing methodologies that can be used for information technology projects. It describes parametric methods like cost estimating relationships, learning curves, and regression analysis. It also covers bottom-up and top-down approaches, as well as total cost of ownership versus total cost of acquisition. Additional topics include life cycle costing, cost benefit analysis using net present value and return on investment, and examples of parametric cost models like COCOMO. The document emphasizes that accurate cost estimation requires defining the problem, alternatives, and quantifying benefits and costs to support project selection and resource allocation decisions.
Exposición sobre el método PERT, conceptos, objetivos, ventajas, aplicabilidad y formulas requeridas para realizar un grafo PERT y la ruta crítica. además se muestran algunos software para generar los gráficos PERT.
Total Cost of Ownership, what is it ? and why do we need to know more about it.Ashraf Osman
This is a brief presentation about TCO, a subject that should be addressed by all CIO's. A lot of savings can be realized when one gives TCO a careful look ..
ATI Technical CONOPS and Concepts Technical Training Course SamplerJim Jenkins
This three-day course is designed for engineers, scientists, project managers and other professionals who design, build, test or sell complex systems. Each topic is illustrated by real-world case studies discussed by experienced CONOPS and requirements professionals. Key topics are reinforced with small-team exercises. Over 200 pages of sample CONOPS (six) and templates are provided. Students outline CONOPS and build OpCons in class.
Exposición sobre el método PERT, conceptos, objetivos, ventajas, aplicabilidad y formulas requeridas para realizar un grafo PERT y la ruta crítica. además se muestran algunos software para generar los gráficos PERT.
Total Cost of Ownership, what is it ? and why do we need to know more about it.Ashraf Osman
This is a brief presentation about TCO, a subject that should be addressed by all CIO's. A lot of savings can be realized when one gives TCO a careful look ..
ATI Technical CONOPS and Concepts Technical Training Course SamplerJim Jenkins
This three-day course is designed for engineers, scientists, project managers and other professionals who design, build, test or sell complex systems. Each topic is illustrated by real-world case studies discussed by experienced CONOPS and requirements professionals. Key topics are reinforced with small-team exercises. Over 200 pages of sample CONOPS (six) and templates are provided. Students outline CONOPS and build OpCons in class.
Managing Complexity and Change with Scalable Software Designlbergmans
This is a presentation I gave to a group of IT managers. It explains what 'scalable design' is about, discusses its motivations by a number of facts and figures about software development, and illustrates the approach through a real-world case.
AN understanding as to how the J2 UNiversal Tool-Kit can be used for the complete development of aircraft and provides more capability than just dynamic modelling
As mentioned on the ISBSG workshop in El Segundo and the MAIN track in the IWSM in Assisi, the Basis of Estimate - Software Services is ready for review.
The document is intended to set a best practice for structuring an Estimate for Software Services.
You are invited to review it.
If interested you're allowed to forward the attached document to reviewers.
Comment by the reviewers can be mailed directly to me: Ton Dekkers ton.dekkers@nesma.nl
The due date for comments is set to Sunday, December 16 2012.
Next step will be incorporating the useful suggestions and preparing a version for the 3rd and final review within AACE.
Six institutions collectively investigating hosting resulted in a unique cloud collaboration with a third-party provider. Due diligence determined that virtualization and clustering technologies provided real cost savings and Tier 3–4 facility benefits. This poster session chronicled the process and describe the pros and cons, cost factors, tangible and intangible benefits, and lessons learned. Poster URL: http://bit.ly/RgEROJ
These were the poster session slides
Discussion on strategies for shaping model behaviors and approaches for a modern (contemporary) IT practice in higher education. CampusWorks, Inc. annual meeting 2016.
Managing Complexity and Change with Scalable Software Designlbergmans
This is a presentation I gave to a group of IT managers. It explains what 'scalable design' is about, discusses its motivations by a number of facts and figures about software development, and illustrates the approach through a real-world case.
AN understanding as to how the J2 UNiversal Tool-Kit can be used for the complete development of aircraft and provides more capability than just dynamic modelling
As mentioned on the ISBSG workshop in El Segundo and the MAIN track in the IWSM in Assisi, the Basis of Estimate - Software Services is ready for review.
The document is intended to set a best practice for structuring an Estimate for Software Services.
You are invited to review it.
If interested you're allowed to forward the attached document to reviewers.
Comment by the reviewers can be mailed directly to me: Ton Dekkers ton.dekkers@nesma.nl
The due date for comments is set to Sunday, December 16 2012.
Next step will be incorporating the useful suggestions and preparing a version for the 3rd and final review within AACE.
Six institutions collectively investigating hosting resulted in a unique cloud collaboration with a third-party provider. Due diligence determined that virtualization and clustering technologies provided real cost savings and Tier 3–4 facility benefits. This poster session chronicled the process and describe the pros and cons, cost factors, tangible and intangible benefits, and lessons learned. Poster URL: http://bit.ly/RgEROJ
These were the poster session slides
Discussion on strategies for shaping model behaviors and approaches for a modern (contemporary) IT practice in higher education. CampusWorks, Inc. annual meeting 2016.
Matrix of collaborative IT projects referenced in panel discussion “Collaboration by Design, Innovation with Purpose” at the EDUCAUSE annual conference Nov. 2011.
Report proposing the establishment of a cyberinfrastructure for Tennessee to enable collaborative research among Oak Ridge National Laboratory (ORNL), Tennessee Board of Regents (TBR), and the University of Tennessee (UT).
EDUCAUSE Live! presentation given September 8, 2010. Talent management is the process of attracting, selecting, training, developing and promoting employees throughout the institution. A focus on obtaining and developing talent ensures that the staff has the tools/support/resources necessary to perform well, are properly motivated/compensated, and are ready to transition into leadership roles as appropriate. They become valuable assets because over time they develop the necessary core competencies and internalized institutional core values.
Credit Card Computers and Their Application in HEThomas Danford
Presented at THEITS 2014: The Raspberry Pi (RPi) and Beaglebone Black (BBB) are small single-board computers that bring relatively new computer concepts to higher education. The idea is to replace traditional expensive equipment with relatively inexpensive equipment that gives the student/user the freedom to experiment through trial and error without the fear/consequences of crashing more expensive systems. This session gave an overview of each board’s hardware, necessary peripherals, optional accessories, OS and development software, and their strengths/weaknesses/limitations. The new learning model these boards offer, the trade-offs, and areas in higher education in which they may play a role in learning and other applications were also discussed.
Providing Metrics for Decision Makers CoHEsion13Thomas Danford
Departments across any institution, from finance to HR, enrollment to alumni, to student services et al., management is constantly looking for ways to improve the performance of their organizations and initiatives. Nevertheless, providing metrics to enable decision makers to align departmental goals with the mission of the institution is difficult. This presentation will chronicle what the Tennessee Board of Regents is doing to lower the barriers of cost, time, and quality in delivering actionable metrics to campus leaders across the system.
10 Determinants and 13 Ground Rules CoHEsion13Thomas Danford
10 Determinants & 13 Ground Rules that Improve Institutional Performance
Improving both the quality of service that your organization delivers along with the value of the employees that deliver the service are two crucial pillars in institutional performance. This discussion will focus on the application of the “10 Determinants of Service Quality” along with the “13 Ground Rules for Success in the Information Age” in managing an organization. The 10 Determinants will focus on the understanding of where the service quality “perception gap” arises and how management can address it. In a similar fashion, the 13 Ground Rules will provide the backdrop for what kind of employees we need to look for and develop.
Keynote for the Tennessee Association for Institutional Researchers (TENNAIR) 2013 conference. The theme of the conference being “big data” the presentation centered around the big data project of the Tennessee Board of Regents.
During the June 2010 quarterly meeting of the Tennessee Board of Regents, board members approved an implementation plan recommended by the National Center for Higher Education Management Systems (NCHEMS) that called for the creation of a data warehouse to be used to enhance decision-making at both the system and campus levels. The strategy now referred to as the “Common Data Repository” (CDR) is to create a single authoritative data warehouse where data from institutions will automatically be fed into the CDR from their Banner administrative systems be they hosted or located at the campus. The presentation provided an overview of the project as to its strategic purpose, how the technology will work, and the role that the functional users will play (including governance).
It was an honor to be asked to participate in the 2013 Ellucian Live's Executive Forum concurrent session on "The ROI of Consolidating ERPs and Services Across Multiple Campuses." These are the slides used during the presentation and a better description of the projects can be found at: http://tdanford.blogspot.com/
TBR Business Process Improvement EDUCAUSE12Thomas Danford
On-line presentation at EDUCAUSE 2012: The Tennessee Board of Regents embarked on a multi-institution business process realignment project for the system's 13 community colleges. The project identified 255 initiatives that defined process improvements in multiple ways, including process optimization, policy, and training. This session chronicled the project from its innovative approach through lessons learned.
In the early fall of 2012 the TBR signed an agreement with SciQuest for an eProcurement and Spend Management solution for the entire system. At the TN-Summit I led a panel discussion on the rationale for the project and steps going forward. These are the slides that were used to stimulate the discussion with the audience.
Presentation given at the TNSCORE 2012 annual conference. Tennessee is a designated EPSCoR state. EPSCoR (Experimental Program to Stimulate Competitive Research) is a program administered by the National Science Foundation to assist states in boosting the level of research funding provided by NSF. This presentation gave an overview of the development of cyberinfrastructure in the state as well as planned future improvements.
An Exploration: Moving Your Enterprise to a Cloud CollaborationThomas Danford
Presentation at Educause Southeast 2012 - The ever-costly hardware refresh cycle for administrative systems, coupled with budget cutbacks and IT audit findings, prompted five community colleges and their system offices to explore hosting or cloud computing as an alternative to independent systems at each of their campuses. Is collaborating in such a move to the cloud truly a viable option for lowering or maintaining current costs, both in real dollars and in staff hours? Can benefits be realized in terms of providing enhanced, more secure services, better redundancy, and increased availability and scalability? What issues arise when institutions collaborate in such a venture? Bring your own experiences and questions to this open dialogue where we'll create a working roadmap that you and others can follow.
Rethinking Disaster Prepardness to Leverage Resources in a Cloud and Mobile World: Presentation given at the 2012 Tennessee Higher Education Symposium (THEITS) - In many respects the disaster recovery plans of today are based upon the environments of old where commodity hardware, cloud resources and mobile devices didn’t exist. In November of 2011 the Tennessee Board of Regents office became the first public higher education organization to move its ERP system to the cloud by having it hosted at the state’s new data center. The following January, state auditors came on site to perform a routine biennial audit. The audit process included an information systems and disaster recovery component which led to a complete rethinking of disaster recovery in the new environment. This presentation chronicled the issues of moving mission critical systems to the cloud and how cloud resources from various sources coupled with mobile devices can be incorporated for cost effective disaster recovery planning.
Presentation as a “kickoff speaker” for the 2011 Innovative Professor Conference November 7-8, 2011 at Austin Peay State University. Theme: "Clouducation -- The Silver Lining of Cloud Education."
Essentials of Automations: Optimizing FME Workflows with ParametersSafe Software
Are you looking to streamline your workflows and boost your projects’ efficiency? Do you find yourself searching for ways to add flexibility and control over your FME workflows? If so, you’re in the right place.
Join us for an insightful dive into the world of FME parameters, a critical element in optimizing workflow efficiency. This webinar marks the beginning of our three-part “Essentials of Automation” series. This first webinar is designed to equip you with the knowledge and skills to utilize parameters effectively: enhancing the flexibility, maintainability, and user control of your FME projects.
Here’s what you’ll gain:
- Essentials of FME Parameters: Understand the pivotal role of parameters, including Reader/Writer, Transformer, User, and FME Flow categories. Discover how they are the key to unlocking automation and optimization within your workflows.
- Practical Applications in FME Form: Delve into key user parameter types including choice, connections, and file URLs. Allow users to control how a workflow runs, making your workflows more reusable. Learn to import values and deliver the best user experience for your workflows while enhancing accuracy.
- Optimization Strategies in FME Flow: Explore the creation and strategic deployment of parameters in FME Flow, including the use of deployment and geometry parameters, to maximize workflow efficiency.
- Pro Tips for Success: Gain insights on parameterizing connections and leveraging new features like Conditional Visibility for clarity and simplicity.
We’ll wrap up with a glimpse into future webinars, followed by a Q&A session to address your specific questions surrounding this topic.
Don’t miss this opportunity to elevate your FME expertise and drive your projects to new heights of efficiency.
UiPath Test Automation using UiPath Test Suite series, part 3DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 3. In this session, we will cover desktop automation along with UI automation.
Topics covered:
UI automation Introduction,
UI automation Sample
Desktop automation flow
Pradeep Chinnala, Senior Consultant Automation Developer @WonderBotz and UiPath MVP
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...DanBrown980551
Do you want to learn how to model and simulate an electrical network from scratch in under an hour?
Then welcome to this PowSyBl workshop, hosted by Rte, the French Transmission System Operator (TSO)!
During the webinar, you will discover the PowSyBl ecosystem as well as handle and study an electrical network through an interactive Python notebook.
PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
- For advanced developers: master the skills to efficiently apply PowSyBl functionalities to your real-world scenarios.
Encryption in Microsoft 365 - ExpertsLive Netherlands 2024Albert Hoitingh
In this session I delve into the encryption technology used in Microsoft 365 and Microsoft Purview. Including the concepts of Customer Key and Double Key Encryption.
The Art of the Pitch: WordPress Relationships and SalesLaura Byrne
Clients don’t know what they don’t know. What web solutions are right for them? How does WordPress come into the picture? How do you make sure you understand scope and timeline? What do you do if sometime changes?
All these questions and more will be explored as we talk about matching clients’ needs with what your agency offers without pulling teeth or pulling your hair out. Practical tips, and strategies for successful relationship building that leads to closing the deal.
Securing your Kubernetes cluster_ a step-by-step guide to success !KatiaHIMEUR1
Today, after several years of existence, an extremely active community and an ultra-dynamic ecosystem, Kubernetes has established itself as the de facto standard in container orchestration. Thanks to a wide range of managed services, it has never been so easy to set up a ready-to-use Kubernetes cluster.
However, this ease of use means that the subject of security in Kubernetes is often left for later, or even neglected. This exposes companies to significant risks.
In this talk, I'll show you step-by-step how to secure your Kubernetes cluster for greater peace of mind and reliability.
DevOps and Testing slides at DASA ConnectKari Kakkonen
My and Rik Marselis slides at 30.5.2024 DASA Connect conference. We discuss about what is testing, then what is agile testing and finally what is Testing in DevOps. Finally we had lovely workshop with the participants trying to find out different ways to think about quality and testing in different parts of the DevOps infinity loop.
Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024Tobias Schneck
As AI technology is pushing into IT I was wondering myself, as an “infrastructure container kubernetes guy”, how get this fancy AI technology get managed from an infrastructure operational view? Is it possible to apply our lovely cloud native principals as well? What benefit’s both technologies could bring to each other?
Let me take this questions and provide you a short journey through existing deployment models and use cases for AI software. On practical examples, we discuss what cloud/on-premise strategy we may need for applying it to our own infrastructure to get it to work from an enterprise perspective. I want to give an overview about infrastructure requirements and technologies, what could be beneficial or limiting your AI use cases in an enterprise environment. An interactive Demo will give you some insides, what approaches I got already working for real.
Connector Corner: Automate dynamic content and events by pushing a buttonDianaGray10
Here is something new! In our next Connector Corner webinar, we will demonstrate how you can use a single workflow to:
Create a campaign using Mailchimp with merge tags/fields
Send an interactive Slack channel message (using buttons)
Have the message received by managers and peers along with a test email for review
But there’s more:
In a second workflow supporting the same use case, you’ll see:
Your campaign sent to target colleagues for approval
If the “Approve” button is clicked, a Jira/Zendesk ticket is created for the marketing design team
But—if the “Reject” button is pushed, colleagues will be alerted via Slack message
Join us to learn more about this new, human-in-the-loop capability, brought to you by Integration Service connectors.
And...
Speakers:
Akshay Agnihotri, Product Manager
Charlie Greenberg, Host
UiPath Test Automation using UiPath Test Suite series, part 4DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 4. In this session, we will cover Test Manager overview along with SAP heatmap.
The UiPath Test Manager overview with SAP heatmap webinar offers a concise yet comprehensive exploration of the role of a Test Manager within SAP environments, coupled with the utilization of heatmaps for effective testing strategies.
Participants will gain insights into the responsibilities, challenges, and best practices associated with test management in SAP projects. Additionally, the webinar delves into the significance of heatmaps as a visual aid for identifying testing priorities, areas of risk, and resource allocation within SAP landscapes. Through this session, attendees can expect to enhance their understanding of test management principles while learning practical approaches to optimize testing processes in SAP environments using heatmap visualization techniques
What will you get from this session?
1. Insights into SAP testing best practices
2. Heatmap utilization for testing
3. Optimization of testing processes
4. Demo
Topics covered:
Execution from the test manager
Orchestrator execution result
Defect reporting
SAP heatmap example with demo
Speaker:
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
State of ICS and IoT Cyber Threat Landscape Report 2024 previewPrayukth K V
The IoT and OT threat landscape report has been prepared by the Threat Research Team at Sectrio using data from Sectrio, cyber threat intelligence farming facilities spread across over 85 cities around the world. In addition, Sectrio also runs AI-based advanced threat and payload engagement facilities that serve as sinks to attract and engage sophisticated threat actors, and newer malware including new variants and latent threats that are at an earlier stage of development.
The latest edition of the OT/ICS and IoT security Threat Landscape Report 2024 also covers:
State of global ICS asset and network exposure
Sectoral targets and attacks as well as the cost of ransom
Global APT activity, AI usage, actor and tactic profiles, and implications
Rise in volumes of AI-powered cyberattacks
Major cyber events in 2024
Malware and malicious payload trends
Cyberattack types and targets
Vulnerability exploit attempts on CVEs
Attacks on counties – USA
Expansion of bot farms – how, where, and why
In-depth analysis of the cyber threat landscape across North America, South America, Europe, APAC, and the Middle East
Why are attacks on smart factories rising?
Cyber risk predictions
Axis of attacks – Europe
Systemic attacks in the Middle East
Download the full report from here:
https://sectrio.com/resources/ot-threat-landscape-reports/sectrio-releases-ot-ics-and-iot-security-threat-landscape-report-2024/
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
Neuro-symbolic is not enough, we need neuro-*semantic*
Cost Analysis In IT - HES08
1. Costing Methodologies for
Information Technology
I f i T h l
Tennessee IT Symposium
April 21, 2008
Thomas Danford
Th D f d
Chief Information Officer
Tennessee Board of Regents
2. SCIENCE APPLICATIONS INTERNATIONAL
CORPORATION (SAIC) ORLANDO, FL
Cost Analyst: Developed baseline cost estimates acquisition cost estimates budgetary
estimates, estimates,
proposals, and other cost/budget related studies for a variety of Department of Defense
programs. Program assignments included: The Conduct of Fire Trainer (COFT), for use by the
US Army in the training of M1, M1A1, M60, and Bradley Fighting Vehicle crews. The Main Tank
Gun/Weapon Effects Signature Simulator (MTG/WESS), a battlefield simulator for use in force-
on-force training b the armor and i f
f i i by h d infantry schools. GUARDFIST I & II i
h l II, interactive videodisk
i id di k
trainers for Army National Guard armor units. Chemical Warfare Oxygen Generator (CWOG), a
device designed to produce therapeutic oxygen while operating in a CW environment, and
other cost studies relating to military training and simulation requirements. These assignments
involved t e a a ys s o life cyc e cost, budget/co t act requirements, cost be e t,
o ed the analysis of e cycle budget/contract equ e e ts, benefit,
contingency, sensitivity and trade-off.
3. Goa s, Objectives, a d G ou d
Goals, Object es, and Ground
Rules
Discussion of Current Budgetary Climate
Overview of Cost Estimating Tools and
Methodologies Used in IT
The Role of Costing in Determining Better
Resource Allocation Decisions
No Math/Accounting Lessons or Review!
All Examples Presented are for Illustrative
Purposes Only!
Focus on Quantitative not Qualitative
4. Cost Estimate vs. Cost
st ate s
Methodology vs. Cost Model
What is A Cost Estimate?
The analysis of all cost elements of a project proposal or on-going work. It
includes verification of cost data, determination and evaluation of all
elements of costs and projection of these data to determine the effect on
costs,
price.
What Is A Cost Methodology?
An
A organized, d
i d documented set of practical id
t d t f ti l ideas, proven practices,
ti
procedures and guidelines used for determining one or more cost
elements of a cost analysis.
What is A Cost Model?
A set of mathematical relationships arranged in a systematic sequence to
incorporate/formulate a cost methodology(ies) in which cost estimates are
derived
deri ed from inp ts T picall a cost model is in the form of a comp ter
inputs. Typically computer
program or spreadsheet.
5. Types of Cost Estimates
Order of Magnitude Estimates
Budgetary Estimates
g y
Definitive (Detailed) Estimates
6. Cost Methodologies
(Appropriate & Popular in IT Costing)
Parametric
Cost Estimating Relationships (CERs)
Learning Curve
Regression
Design to Specification “Bottom-up”
Design to Budget “Top-down”
D i t B d t “T d ”
Ratios
7. Parametric Methods
Cost Estimating Relationships (CERs)
Based upon hi
B d historical d
i l data and statistics
d i i
Industry/use specific
Statistically i bl
St ti ti ll viable (F & T St ti ti )
Statistic)
Learning Curve (Slide Follows)
Regression (Slide Follows)
8. CERs
CER
Home Grown Avg. HD Requests/Business Day: 7.68
Avg. Time (Hrs) to Resolution/Request: 3.25
Approx. R
A Requests/Year:
t /Y 1,896
1 896
Approx. Person Hours/Year: 6,162
FTEs Required for SMO Requests: 4
Industry “Accepted”
System Project Management (SPM)
General & Administrative (G&A)
Average Change Traffic (ACT)
9. Learning Curve
100
90
80
70
Labor Hours
s
60
50
40
30
20
10
0
0 20 40 60 80 100 120
Task Repetition
A sample 90% learning curve. The first time the task is performed requires 100 hours of labor
to complete and as the number of times the task is repeated, the labor hours required
decreases due to learning. After the 50th time in performing the task however, the reduction in
labor hours from learning diminishes.
10. Regression
LEAP Conversion Cost Estim ates
(Standalone by Tier)
8.0
7.0
70
6.0
Co (in $M)
5.0
4.0
ost
3.0
2.0
1.0
0.0
II III IV V VI
SunGard Licensing Tier Best Fit
Know n LEAP Conversions
A “best fit” curve for calculating approximate costs of “stand alone” ERP
implementations of all HEP Tiers.
11. Bottom-up vs. Top-down
Both require extensive analysis of direct and (as
much as possible) indirect costs
Direct & indirect costs are identified/established
through the work breakdown structure (WBS)
May utilize/incorporate parametric methodologies
Bottom-up is requirements driven whereas Top-
down is funding driven
12. 1.0 Hardware Costs
1.1 Servers
1.2 Storage
1.3 Network Equipment
Sample WBS
S l 1.4
1.5
Backup
De-installation/disposal fees
Elements will vary by project … 2.0 Software Costs
2.1 Applications
2.2
22 OS
2.3 Middleware
Note on Indirect Costs: When expenses 2.4 Security (NMS, access, etc.)
2.5 Media conversion (tapes)
are shared among projects/departments 3.0 Professional services
such as legal services security
services, security, 3.1 Project Management
accounting, purchasing, payables, and 3.2 Consulting
the like, they are defined as indirect 3.3 Training
3.4 Expenses (travel & per diem)
costs. Identifying and accounting for 4.0 Site preparation and implementation
these costs are among the biggest 4.1 AC power cabling
challenges for cost estimating. 4.2 HVAC
4.3 Racking
4.4 Network cabling
Indirect costs inevitably benefit (or 5.0 Recurring
burden) all projects and since calculating 5.1 Personnel
the full cost of a project is required for 5.2 Hardware maintenance
5.3 Software maintenance
true discounted cash flow analysis, every 5.4 AC power & HVAC
effort should be made to identify them as 5.5 Insurance
much as possible or determine a burden 6.0 Miscellaneous
6.1 Parallel operations (maintenance, backfill, etc.)
rate. 6.2 Indirect cost burden
13. Total Cost of Ownership (TCO) vs.
Total Cost of Acquisition (TCA)
TCO can and usually does vary dramatically
against TCA
i t
TCO is more relevant in determining the
viability of any capital i
i bilit f it l investment
t t
Vendors typically focus on either acquisition
or maintenance costs but the two must be
i t t b t th t tb
considered together
14. Life Cycle Cost g – The Time
e Cyc e Costing e e
Value of Money
Research & Development
Production
Fielding (1-3 yrs)
Sustainment (over the useful life)
15. Cost Benefit Analysis
The discounted value of a project’s life cycle
benefits is compared to the discounted value
p
of its life cycle costs
Qualitative vs. Quantitative
Discounted Cash-flow (DCF) Methods
Net Present Value (NPV)
Internal Rate-of-return (IRR)
Revenue Neutral Projects - NPV
16. NPV Analysis
NPV of Two Technologies/Methodologies
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
Year #1 Year #2 Year #3 Year #4 Year #5
§ 49-7-1___(a)(2)(A) Costs § 49-7-1___(a)(2)(B) Costs
5 Year Cumulative Costs for TCA Title 49, Chapter 7, Part 1 Amendment (Residential Only)
Year #1 Year #2 Year #3 Year #4 Year #5 NPV
§ 49-7-1___(a)(2)(A) Costs 697,500 1,274,100 1,861,767 2,460,722 3,071,192 2,817,244
§ 49-7-1___(a)(2)(B) Costs 1,365,000 1,569,750 1,774,500 1,979,250 2,184,000 2,064,151
17. Return on Investment (ROI)
Ratio of resources gained or lost on a project
relative t th amount of resources invested
l ti to the t f i t d
Choice of investment alternatives can be
essential t hi h ROI
ti l to high
Leveraging Economies of Scale Results in a
Greater
G t ROI
Appreciating vs. Depreciating ROI
18. ROI
Distance Education Programs
Campus Delivered vs. Collaborative Online
Campus Collaborative
Program Program
Course Development Costs $3,000 -$6,000
Online Fee/Course 40 40
Reimbursement Rate/Course 30% 30%
Number of Students 20 100
Marginal Return/Course $12 $12
Total Revenue $240 $1,200
ROI -92% 120%
Many Indirect Cost Savings
-24x7 Helpdesk
-Library
-Hosting
-Professional Development
19. Applications o Cost-Benefit &
pp cat o s of Cost e e t
ROI Analysis in IT
Whether or not to pursue a project
Select among alternatives with different
benefits
Select among competing projects in IT
Select among competing projects in and
outside of IT
20. Cost–Benefit & ROI
Tips for a Better Analysis
Don’t start with a predetermined conclusion
Clearly define problem with realistic baseline, all
reasonable alternatives, and benefits and costs
measures
Monetize benefits and costs as much as
possible
Use credible data
Deal appropriately with risk and uncertainty
21. Parametric Cost Models
COnstructive COst MOdel (COCOMO) –
Long History & Open Source
g y p
SEER-SEM – Galorath Inc.
PRICE-S
Software Cost Modeling System (COSMOS)
– ETSU
22. COCOMO
( )
(PH)AM = (ACT)(PH)DEV
( )( )
Contract Modifications Only
SunGard SMO Staff Only
(PH)AM : Annual Maintenance in Person Hours 2,347
(PH)DEV : Development Effort in Person Hours 8,094
ACT : Fraction of software that undergoes change during a year 29.00%
TBR SMO Staff Only
(PH)AM : Annual Maintenance in Person Hours 809
(PH)DEV : Development Effort in Person Hours 8,094
ACT : Fraction of software that undergoes change during a year 10.00%
All Modifications To Date
SunGard SMO Staff Only
(PH)AM : Annual Maintenance in Person Hours
( ) 6,891
(PH)DEV : Development Effort in Person Hours 23,763
ACT : Fraction of software that undergoes change during a year 29.00%
TBR SMO Staff Only
(PH)AM : AAnnual M i
l Maintenance i P
in Person H
Hours 2,376
23 6
(PH)DEV : Development Effort in Person Hours 23,763
ACT : Fraction of software that undergoes change during a year 10.00%
23. Ratios – Comparison of “similar” requirements
with different approaches (E.g. ERP vs. 3GL)
Integrated Commercial RDBMS ERP (Student
(Student,
HR/Payroll, Finance)
FTEs - 15
Total Annual Personnel Cost = $755K
Management Ratio = 16%
Best of Breed/Home Grown 3GL System (Student,
HR/Payroll, Finance)
FTEs - 27
Total Annual Personnel Cost = $1.3M
Management Ratio = 33%
24. The Consequences of
Estimation E
E ti ti Error
Underestimation:
undermine planning &
shortchange upstream
activities
Accurate Estimates: fall
within 5-10%
5 10%
Overestimation:
Parkinson’s Law (efforts
expand to fill available
budget and resources)
25. Summary & Few Caveats
Business Case Requires Cost Analysis
Judgment
Optimism Bias
Strategic Misrepresentation
Q
Qualitative Issues Accompany Cost
p y
Risk Needs to be Evaluated
26. RESOURCES
The Society of Cost Estimating and Analysis
http://www.sceaonline.net/
http://www sceaonline net/
The International Society of Parametric
Analysts http://www ispa cost org/
http://www.ispa-cost.org/
Data & Analysis Center for Software
https://www.thedacs.com/databases/url/key/4/152
Thanks for joining me today!!