https://www.Çℎḙḡḡ.com/homework-help...-might-affect-ability-complete-proje-q9058641
Paunlock po
Cost management within an information technology project is probably one of the most difficult tasks an organization will encounter. Estimating the various costs that go into an IT project is extremely difficult to do from the start. This is an important factor to consider when analyzing the success of cost management practices on a particular project, because final costs are measured against the initial estimates. Unfortunately, it is likely that this estimation/budgeting difficulty is what causes many IT professionals to (as the book used) “smirk” at the idea of project cost management and/or cost overruns. In other words: effective IT project cost management is pretty much impossible, so why bother.
One of the biggest reasons IT professionals have trouble with cost management is because many IT projects have very vague or undefined requirements initially. For example, almost every software project is unique (i.e. a mobile app for a bank), so there is no clear path on which to formulate project costs. This initial lack of detail often results in underestimated development costs, which are quickly surpassed when multiple issues arise due to various factors (hardware incompatibility, expanding scope, etc.). Not conducting a detailed requirements analysis almost always results projects going over budget, because IT projects are rarely as simple as initially thought.
The aforementioned unique nature of IT projects also includes a heavy reliance on new technologies and full business process analysis. Any use of new technology has an associated risk, which often leads to complex problems, or even abandonment of the technology itself. Both of these situations inflate project costs, and can quickly turn an on-budget project into an extremely expensive undertaking. This fact is well understood by many IT professionals, which is yet another reason why they don’t put a whole lot of faith in project cost management.
The previous mobile banking application provides a great example of how not placing emphasis on project cost management can quickly derail an IT project. As previously mentioned, many project requirements are not defined well during initial estimations. In this case, the work involved in creating an app that is independent of the operating system (i.e. Android, OS X, Windows) is largely underestimated (due to the cost estimates being passed off to accountants by the IT staff). This mistake quickly results in development times that double project plan estimates. Also, Google launches a new Android OS during the software development phase of the project. This unanticipated technology change adds further complexity to the OS-independent requirement. The poor planning of initial requirements, combined with an unforeseen technology update, has now resulted in software development labor inputs that are triple initial estimates, placing project cost 50% above budget. This example demonstrates how overlooking project cost management can easily spin IT projects out of control.