BPI Cost-Benefit Analysis

As part of its efforts to fully serve its clients’ Information Technology (IT) consulting needs, FOX Systems, Inc. (FOX) provides a full scope of Cost-Benefit Analysis (CBA) services.

Cost-benefit analyses are often part of the natural progression in information system replacement or improvement projects that involve requirements definition and alternative solutions development.

The FOX CBA Model takes into consideration the total cost of ownership over time and accounts for the following processes:

• Establishing costs for the current IT environment

• Trending status quo costs based on growth and inflationary factors

• Assessment of the gap between the future system requirements and those of each alternative

• Assigning costs to each of the alternatives

• Comparing costs of the current IT environment to the cost of environments in consideration under each alternative

• Quantifying the benefits obtained under each alternative solution

• Conducting analysis on the desirability of each alternative with consideration given to all external factors

• Facilitating a decision by the client

• Our state-level Public Sector clients often require Cost-Benefit Analyses when they are sharing the cost of program changes, system implementations, or operational expenses with the Federal government.

In these instances, a Cost-Benefit Analysis may be required for reasons such as:

• To demonstrate that a desired program change, system implementation, or operational expense is more cost effective than the status quo and/or the alternative solution(s)

• To provide justification that the program and service-related benefits of a desired program change, system implementation, or operational expense are significant enough to warrant increased Federal spending

• To validate existing program costs and allocate cost centers across a variety of program pools

• To analyze staffing impact (either positive or negative) of the desired program change, system implementation, or operational expense

A thorough CBA allows clients to make well-informed decisions when they are faced with several viable alternatives for resource allocation. Once projected costs and benefits (including both tangible benefits and intangible benefits) have been projected, FOX assists its client in evaluating the alternatives against budgetary and political considerations as a means to arrive at the most cost-effective solution for the client’s IT investment.