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Cost Management For IT Project / Product
This document provides an overview of cost management for IT projects. It discusses the importance of controlling costs for business success and defines different types of costs. It then outlines the key aspects of cost management, including planning, estimating costs, determining budgets, and monitoring and controlling costs. Specific strategies for saving costs are presented, such as simplifying processes and managing risks. The document also includes a case study of how Intel reduced supply chain costs and examples of how cloud computing models can impact costs. Overall, the document emphasizes the critical role of cost management in IT projects.
Cost Management For IT Project / Product
- 1. COST MANAGEMENT IN ITPROJECT Tu Pham CTO @ Eway Viet Nam CTO @ AdFlex Viet Nam 1
- 2. My Story Dyno 2014 -Early Stage Dyno 2017 - Acquired by Eway Eway 2018 - SMB Eway 2020 - Holding
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- 5. 一Benjamin Franklin一 “Beware oflittle expenses. A small leak will sink a great ship” 5
- 6. AGENDA 6 THE COST What iscost? Why it matter? Type of cost? 01 HOW TO SAVE COST? 03 COST MANAGEMENT Plan Estimate cost Determine cost Monitoring & Control 02 CASE STUDY 04
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- 8. Costs are theresources used to make a product. It is expressed in monetary terms. WHAT IS COST? 8
- 9. Why It Matter? 1.Controlling costs is essential to Business Success 2. It is important to point out that production involves cost. 3. Without cost management, companies would lose money or customers would receive invoices for much more than expected. 9
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- 11. TYPE OF COST? 11 DIrectCost Indirect Cost
- 12. 12 Fixed Cost VariableCost Oppotunity Cost TYPE OF COST?
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- 15. PLAN - ESTIMATE- DETERMINE BUDGET - MONITORING & CONTROL
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- 20. HOW TO SAVECOST 03
- 21. SIMPLIFY BEWARE RISKBEWARE DEBT HOW? 21
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- 23. PERFORMANCE MANAGEMENT EXAMPLE: ENGINEERING TEAM HIRING- RETAINING - TRAINING - FIRING SHARE VISION & MISSION 23 CULTURE
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- 26. EXAMPLE: CLOUD COMPUTINGRESOURCES REHOST REPLATFORM REFACTOR 26
- 27. PROS CONS Cheap LeastSaving Easy Least Cool Fast REHOST 27
- 28. PROS CONS New TechTakes Longer Culture Change Culture Change Greater Saving More Disruption Less Future Overhead REPLATFORM 28
- 29. PROS CONS New TechTakes Longer Culture Change Culture Change Best Saving More Disruption Real Cloud Architecture REFACTOR 29
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- 32. INTEL 32 The company neededto reduce supply chain expenditure significantly after bringing its low-cost “Atom” chip to market. Supply chain costs of around $5.50 per chip were bearable for units selling for $100, but the price of the new chip was a fraction of that, at about $20. The Path to Cost Through a process of iteration, they gradually sought out and eliminated supply chain inefficiencies to reduce order cycle time incrementally. Further improvement initiatives included: -Cutting the chip assembly test window from a five-day schedule, to a bi-weekly, 2-day-long process -Introducing a formal S&OP planning process -Moving to a vendor-managed inventory model wherever it was possible to do so
- 33. Corona Pandemic Layoff Tracker 503startups w/ layoffs 50337 employees laid off 33
- 34. AdFlex - Cut off35% Infrastructure cost of G8 business model - Cut off 50% cost of AWS S3 storage 34
- 35. THANKS!Does anyone haveany questions? tupp@eway.vn