Consider development, operation, maintenance, future changes and exit costs when evaluating a software project.
Who is this for? Product managers and decision-makers who want to assess a software project beyond the first delivery.
Use cases and context
The effort for the first version is only part of the total costs. Applications require monitoring, security updates, support and technical adjustments after launch. Interfaces and dependent components are also evolving.
A favorable introduction can cause high manual effort later on. Conversely, additional automation is not automatically economical. The decisive factor is how often a process occurs, what the consequences of errors are and what skills the team can provide in the long term.
The approach in detail
- Determine the period under consideration and the expected usage. Make assumptions about the number of users, changes and operating model transparent.
- Record cost blocks separately: rollout, licenses, infrastructure, operations, maintenance, training, and possible replacement. Display uncertain values as bandwidths.
- Compare options based on the same assumptions. In addition to costs, also consider delivery capability, dependencies and the consequences of a failure.
Expected outcomes
- Traceable cost structure over a defined period of time
- Recognizable assumptions and uncertainties
- Comparable solution options
- Visible follow-up costs of technical decisions
Prepare for an informed decision
Existing invoices, operating experience and the expected frequency of changes are helpful. Also estimate the effort required by the departments, for example for manual data maintenance and error corrections.
Consider export opportunities, documentation, and access to necessary skills. An exit scenario is not a prediction, but a way to understand dependencies early on.
Questions and answers
Is it possible to accurately predict total costs?
Usually not. A comprehensible range with clear assumptions is often more useful than a seemingly exact number without justification.
When is automation worthwhile?
When benefits and avoided mistakes justify the development and ongoing maintenance. Frequency and stability of the process strongly influence this assessment.