Activity 6. WBS for Alternative 2:. WBS for Alternative

Added on - 26 Sep 2019

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Activity 6WBS for Alternative 2:WBS for Alternative 3:
Activity 7Economic Analysis of Alternative SolutionsIntroductionThe purpose of the Acquisition StrategyStatement is to serve as the roadmap forguiding contractor solicitation, contractorselection, and implementation projectactivities from initiation of theimplementation project to its operations andultimate disposal at the end of its useful life.This document will be approved by seniormanagement before it is being distributed. Itthen becomes a "living document" in thesense that it is updated as decisions are madeand new information will become available.NPV versus ROIROI will be more preferable for thealternative solution 1, 2 and 3 as it will givethe value in percentage like 40% of ROI willbe achieved but for alternative 1, 2 and 3 ROIand NPV both are required in order to get theadequate financial data.Providing data for the economic analysisFor alternative solution 1, the total riskexposure is $8,800-$28,000. And foralternative solution 2, the total risk exposureis $10, 900- $32, 000. And for the alternativesolution 3, the total risk exposure is $22,500-$74,500. As it can be concluded that thealternative solution 1 will be moreeconomically feasible.Risk data and risk adjustmentsIn all the three alternatives the organizationalrisk, privacy risk, complexity risk,infrastructure risk and external risk will beadjusted by mitigating the various strategiesfor each alternatives which will beeconomically feasible.benefits data and cost dataThe professional approach need to beimplemented for the cost data and thealternative 2 is most suitable as can be seen inthe WBS of the alternatives.Selecting a common life cycle periodThe common life cycle period will be of threeyears as the selected alternative will give thebest output. As the software will workwithout becoming obsolete.
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