Question 49 of 280 from exam CGEIT: Certified in the Governance of Enterprise IT

C.

Assessing the benefits of a new IT project throughout its life cycle is crucial to ensure that the project is achieving its intended outcomes and delivering value to the enterprise. There are different methods that an enterprise can use to assess the benefits of a new IT project throughout its life cycle, and each method has its own strengths and weaknesses.

A. Calculation of the total cost of ownership: The total cost of ownership (TCO) is a method used to calculate the total cost of a project over its entire life cycle, including all direct and indirect costs associated with the project, such as hardware, software, personnel, maintenance, training, and support costs. By calculating the TCO, an enterprise can determine the total cost of the project and compare it to the expected benefits to determine whether the project is worth the investment.

B. Calculation of the net present value: The net present value (NPV) is a method used to calculate the present value of the expected cash flows from a project, taking into account the time value of money. By calculating the NPV, an enterprise can determine whether a project is expected to generate a positive or negative return over its life cycle. If the NPV is positive, the project is expected to generate a return greater than the cost of the investment.

C. Periodic review of the business case: The business case is a document that outlines the rationale for a project, including its objectives, benefits, costs, risks, and alternatives. By periodically reviewing the business case, an enterprise can ensure that the project is still aligned with its strategic objectives and that the expected benefits are still achievable. If the business case is no longer valid, the enterprise may need to reconsider the project or adjust its scope, objectives, or budget.

D. Periodic measurement of the project slip rate: The project slip rate is a measure of how closely a project is meeting its schedule and budget targets. By periodically measuring the project slip rate, an enterprise can determine whether the project is progressing as planned and whether corrective actions are needed to keep the project on track. However, measuring the project slip rate alone may not be sufficient to assess the benefits of a project, as it does not take into account the expected benefits and the cost of achieving them.

In conclusion, while all of the options A to D are important methods for assessing the benefits of a new IT project throughout its life cycle, the BEST option depends on the specific needs and circumstances of the enterprise. Ideally, an enterprise should use a combination of these methods to ensure that the project is delivering the expected benefits and is aligned with its strategic objectives.