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more sophisticated and centralized financial applications software for cost information. ? Project management software has many costrelated features, especially enterprise PM software. 31 Information Technology Project Management, Fourth Edition Sample Project Portfolio Management Screen Showing Project Health 32 Information Technology Project Management, Fourth Edition 演講完畢,謝謝觀看! 。Chapter 7: Project Cost Management Information Technology Project Management, Fourth Edition 1 Information Technology Project Management, Fourth Edition Chapter 7: Project Cost Management The Importance of Project Cost Management Basic Principles of Cost Management Cost Estimating Cost Budgeting Cost Control Using Software to Assist in Cost Management 2 Information Technology Project Management, Fourth Edition The Importance of Project Cost Management ? IT projects have a poor track record for meeting budget goals. ? The 2023 CHAOS studies showed the average cost overrun (the additional percentage or dollar amount by which actual costs exceed estimates) was 43 percent. ? . lost $55 billion in IT projects in 2023 from cancelled projects and overruns pared to $140 billion in 1994. 3 Information Technology Project Management, Fourth Edition What Went Wrong? According to the San Francisco Chronicle’s frontpage story, “Computer Bumbling Costs the State $1 Billion,” the state of California had a series of expensive IT project failures in the late 1990s, costing taxpayers nearly $1 billion…It was ironic that the state that was leading in the creation of puters was also the state most behind in using puter technology to improve its services. The Internal Revenue Service (IRS) managed a series of project failures that cost taxpayers over $50 billion a year—roughly as much money as the annual profit of the entire puter industry. Connecticut General Life Insurance Co. sued PeopleSoft over an aborted installation of a finance system. 4 Information Technology Project Management, Fourth Edition What is Cost? ? Cost is a resource sacrificed or foregone to achieve a specific objective, or something given up in exchange. ? The reasons of cost overrun: ? The original cost estimates for IT projects are low to begin with or based on very unclear project requirements ? Not emphasizing the importance of realistic project cost estimates from the outset. ? Many information technology professionals think preparing cost estimates is s job of accountants. ? Preparing good cost estimates is a very demanding, important skill that all information technology professionals need to acquire. ? Many information technology projects involve new technology or business processes. ? Cost grow and failure are to be expected? Wrong. Using good project cost management can change this false perception. 5 Information Technology Project Management, Fourth Edition What is Project Cost Management? ? Project cost management includes the processes required to