FIT2002 Lecture Notes - Lecture 3: Change Control, Resource Allocation, Payback Period

• School: Monash University
• Department: Information Technology
• Course: FIT2002
• Professor: Ms Poh Lim

Document Summary

Project integration management: tying together all of the other aspects involved in a project to make it a success. Project integration management process: developing the project charter, developing the project management plan, directing and managing project work, monitoring and controlling project work, performing integrated change control, closing the project or phase. Strategic planning: determining long-term objectives, predicting future trends, and projecting the need for new products and services. 4 stage planning process for selecting it projects. Focusing on broad organisational needs: categorizing information technology projects, performing net present value or other financial analyses, using a weighted scoring model. Net present value (npv) analysis: method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflow to the present point in time. Positive npv: return from project exceeds cost of capital. Npv = -c0 +c1/1+r + c2/(1+r)^2 + + ct/(1+r)^t.