general plan: gather information -> develop alternatives -> evaluate alternatives -> plan and document recommended approach to development.
business leverage point: some activity from which a competitive advantage can be gained.
application leverage point: some application (automation of a business process/function) from which a competitive advantage can be gained. that includes:
increase market share
increase linkage to vendors or customers
provide desired information that is currently unavailable
risk: an event that will prevent the completion of the alternative in the time and budget specified.
risk assessment: define possible risks that will delay/stop the project.
contingency plan: define tasks to dea with risks.
cost/benefit analysis: computes the net present value (NPV) of the alternative.
NPV: Net present value: cost estimate accounting the time value of money for multiperiod investments.
make/buy analysis: choose between alternatives for providing an item. eg. aws or azure. where make = the cost of building the solution, buy = the cost of buying the package (eg. aws charges)
Internal rate of return (IRR): the interest rate which equates cash investment outflow with positive cash flow.
payback period: the number of years required to recover the cash outlays for an investment.
recommendation may go with:
the fastest payback coupled with the most requirements met.
lowest NPV, maximum leverage points, and minimum risk.