The Cost Bene t Analysis of

Software Projects: Why You

Need It
• Introduction

Cost bene t analysis of software projects is a critical

process for all businesses in order to understand the
impact of a proposed change and decide whether to
invest in it or not. In this presentation, I will discuss
why it is important and how it can bring tangible
bene ts for organizations.
• What is a cost bene t
analysis?
Cost bene t analysis helps to identify and quantify the
cost and bene ts of a proposed project or new
feature. It is a tool used to determine whether a
project is worth the time and resources or not. By
accurately measuring the cost of implementation and
the expected gain, organizations can make an
informed decision about the investment for software
projects.
• Why you need a cost
bene t analysis
Having a cost bene t analysis helps organizations
from getting on an ineffective software project and
helps them save money and time in the long run. It
provides an evidence based-approach to decision
making and helps with the planning, developing and
implementation of software projects.
• How to do a cost bene t
analysis
The cost bene t analysis of software projects requires
a comprehensive evaluation of the costs (such as
development, maintenance, and training) and
bene ts (such as increased productivity, better
customer experience, and more ef cient processes).
Organizations should consider both the short-term
and long-term bene ts when making software
project decisions. This will help in making an
informed decision regarding the software project, and
consequently help the organization in maximizing
their ROI.
• Cost bene t analysis
example
For example, a software investment could cost the
organization $100,000 in development and $1,000 in
annual maintenance costs. The expected bene ts of
the software project could include increased
productivity as well as better customer experience. If
the organization analyses that this project will
generate $1,500,000 in bene ts and savings over the
long term, then investing in this project is a wise
choice since the ROI of this investment is high.
• Conclusion

Conclusion
Cost bene t analysis is an effective way of measuring
the success of a software project. Knowing the cost
and bene ts of a project, organizations can effectively
make prudent decisions. ROI is key to any software
project. If the expected bene ts outweigh the
associated costs, it is worth the investment, else it is
wise to drop the project altogether.