Some guidelines from the DBIS final seminar:
- each IT project should be analysed as an investment (in the Business Case);
- make a projection on at least 3 years; each new investment during these years is managed in the same way;
- Revenues - are the earnings generated by the project results; HARD to estimate in an IT project that aims to support a business process;
- Costs - are the one time costs (depreciated usually linear over the years + the occurring costs for corrective maintenance and support each year);
- Brut Profit (sometimes called Brut Income) - the earnings minus the costs; also used EBITDA (earnings before interests, taxes, depreciation and amortization) or the EBIT (earnings before interests and taxes);
- Net Profit (Net Income) - brut profit minus the taxes; if the Net Profit is negative then the taxes are considered as positive returns;
- The Net Present Value of the future Net Profits is calculated; the Cost of Capital is used - Weighted Average Cost of Capital (WACC) - that is the cost of the debt (interests) plus the cost of the equity (dividends);
