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Making Smart IT Choices: Understanding Value and Risk in Government IT Investments

Abstract

Introduction

PART ONE: ASSESSING INNOVATIVE USES OF INFORMATION TECHNOLOGY

Chapter 1. The risks of IT innovation in government

Chapter 2. The analysis and evaluation process

Chapter 3. Preparing a business case

Chapter 4. Presenting your business case

PART TWO: SMART IT SKILLS, TECHNIQUES, AND TOOLS

Introduction to Smart IT skills, techniques, and tools

Skills for working with groups

Information gathering techniques

Tools for Phase 1 -- Understanding the problem and its context

Tools for Phase 2 -- Identifying and testing solutions

Tools for Phase 3 -- Evaluating and making smart choices
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Chapter 3. Preparing a business case

Cost estimates and funding sources

Anyone evaluating your project proposal will have questions about it, but two questions you will hear often are: "How much will this cost?" and "Where will the money come from?" An evaluation of costs and benefits is essential information to provide in your business case. Your cost estimates should cover all elements of the project: human resources, technology, consulting, training, physical plant changes, and so on. The analysis must also assess the impact of ongoing costs, such as training and maintenance, and related activities.

Securing funding for your project is likely to be a complex and creative process. While there are often several state and federal sources of funds, you may not find one single source of funding for your project. A multiple source funding model may be the only way to accomplish your goals. Making your case to several "funders" and assembling a mix of resources is sometimes your best road to success and may also help ensure the long-term viability of the project.

Example of a cost summary
Total project costs are estimated at $783,000 for development and implementation. Thereafter, recurring annual costs will be approximately $190,000. The initial costs include contracts for system design and development and customer service training for the Communications Center staff. New staff positions include the Communications Information Manager and one Research Analyst in the Municipal Affairs Division, and one Systems Analyst in the IT Division. All other positions are existing, although extensive retraining will be needed in some areas.

Funding will be requested in the upcoming state budget. Costs can be offset by early implementation of the 800 telephone service for internal communications, cutting the costs of long-distance telephone service to the regions. Early implementation of the consolidated contact list will reduce duplicate printing and mailings. We will take advantage of the agency's existing plan to deploy a statewide intranet service and desktop upgrades to provide the technical infrastructure for the new system at no additional cost.