How do you monetize benefits for a non-revenue generating IT project (that is considered investment as opposed to M&O) like database upgrade, implementation of off-the-shelf modules like SAP, PeopleSoft, Midas, or even applications that create new capabilities and core competencies in R&D?

Some items are obvious, you can estimate reduction in cycle-time or defect rate and convert it into FTE hours and monetize it. But how do project managers and project sponsors monetize things like creating new research capabilities for the purposes of financial evaluation (NPV, Cost-benefit analysis).

2/6/2008 4:57:12 PM

Hire a business analyst that specializes in that field.

2/6/2008 5:26:23 PM

I would call it justification, not monetization. To me, if you are monetizing something it means you are making money off of it. If my computer breaks, I will pay to fix it because I need it do my job, not because that part is making money for me.

I think a cost-benefit analysis would be used to justify things you are talking about like software upgrades, new financial tools, etc.

2/6/2008 6:03:27 PM