Principles of Project Management for Singularlogic

Running head: PRINCIPLES OF PROJECT MANAGEMENT FOR SINGULARLOGIC COMPANY
Principles of Project Management for SingularLogic Company
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PRINCIPLES OF PROJECT MANAGEMENT FOR SINGULARLOGIC COMPANY1
1. Introduction
The case focuses on the new kind of development of software products by SingularLogic,
which is an IT company. The company is one of the primary form of market leader in Business
Software Licensing and Business Software Services with a higher market share. The IT group
helps in providing support towards integrated form of IT solutions for public and private sectors
(Akgün et al., 2015). The following parts of discussion would be majorly be focusing on the
development of understanding regarding the suitable form of project selection methods that
would need to be approached during the project. There are different kind of project selection
methods that needs to be chosen properly based on deriving proper outcomes towards the end of
the project.
Based on determination of the proper form of project selection method, the processes that
would need to be clearly be understood based on which the proper methods would need to be
selected accordingly. The Project Management Body of Knowledge (PMBOK) and related
concepts would be considered as helpful for describing the initial process groups that would be
considered as providing valuable form of inputs towards the project.
2. Discussion
2.1 Identification and Justification of Project Selection Methods for the Project
The various kind of project selection methods that could be considered as majorly useful
for developing new kind of software products by SingularLogic are discussed as follows:
1. Cost Benefit Ratio – This can be defined as a ratio used for the analysis of the
investments made by a company. It also defines the overall relationship between the benefits and

PRINCIPLES OF PROJECT MANAGEMENT FOR SINGULARLOGIC COMPANY2
their relative costs over the proposed project. The cost-benefit analysis as described for the
project could be expressed in qualitative or monetary terms (Zhi et al., 2015). In relation to
understanding the long-term benefits for the project, it is discussed if the cost-benefit ratio is
greater than value 1.0, then the concerned project would be expected to be delivering a positive
result towards the organization and the investors and shareholders involved within the project.
2. Economic Model – It is also known as the Economic Value Added (EVA) of a
concerned project. This could be considered to be similar with the method of Cost Benefit Ratio.
It further describes the total difference of monetary value between the investments made by an
organization and the total revenue that is generated (Zeleti, Ojo & Curry, 2016). This is
considered as the profits, which are generated after the investments made over a project.
3. Payback Period – It is defined as the ratio of cash to the average kind of per period
cash. It can thus be defined as the minimum time taken for recovering the total amount of costs,
which would be invested towards the project. Thus, the Payback period can be considered as the
basic form of project selection method (Wijesuriya et al., 2017). The payback period would then
under consideration about the payback period based on the investments made by the company.
During the calculation of the payback period, the time frame would be required based on the
return on investment. This would be required for repaying of the original costs, which was put as
initial investment.
4. Net Present Value – The NPV can be defined as the total difference between the
current amounts of inflow of cash made within a certain project to the current monetary value of
outflow of cash made over a concerned project. The value of NPV should be considered as
positive at every times. During the making of investment or choosing over a project the NPV