{"id":21,"date":"2022-05-24T00:15:38","date_gmt":"2022-05-24T00:15:38","guid":{"rendered":"https:\/\/www.lodestar-as.com\/?page_id=21"},"modified":"2022-06-16T09:55:41","modified_gmt":"2022-06-16T00:25:41","slug":"it-cost-estimation","status":"publish","type":"page","link":"https:\/\/www.lodestar-as.com\/index.php\/it-cost-estimation\/","title":{"rendered":"IT Cost Estimation"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"21\" class=\"elementor elementor-21\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-727ca02 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"727ca02\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0f599f4\" data-id=\"0f599f4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5344b5e elementor-widget elementor-widget-text-editor\" data-id=\"5344b5e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.6.5 - 27-04-2022 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>There are number of different approaches to cost estimation. The challenge is to find a blend of techniques that provides you with a &#8220;rough order of magnitude&#8221; very quickly and as more data becomes available, the estimate can be adjusted accordingly.<\/p><p>But before we go there, what exactly is an estimate when we are talking about IT projects? The Oxford dictionary defines it as<\/p><p><strong><em>\u201ca judgement that you make without having the exact details or figures about the size, amount, cost, etc. of something\u201d<\/em><\/strong><\/p><p>When IT projects are funded, the <strong>Cost Estimates<\/strong> quickly become <strong>Cost Commitments<\/strong>.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c9306e7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c9306e7\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1d232ca\" data-id=\"1d232ca\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-180835c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"180835c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-f53115a\" data-id=\"f53115a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c61efd6 elementor-widget elementor-widget-text-editor\" data-id=\"c61efd6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>The following is a list of cost estimation methods:<\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b2efd1d elementor-widget elementor-widget-text-editor\" data-id=\"b2efd1d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li>Expert judgement<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a420b1a elementor-widget elementor-widget-text-editor\" data-id=\"a420b1a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>&#8220;Expert judgement&#8221;<\/strong> has many challenges related to bias but there are techniques available to make it a very quick and fairly accurate method of doing &#8220;rough order of magnitude&#8221; cost estimates. This assumes that the &#8220;experts&#8221; have been with the organisation for some time with domain knowledge in the area of the estimate.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d87b160 elementor-widget elementor-widget-text-editor\" data-id=\"d87b160\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li>Top down<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-58ac91c elementor-widget elementor-widget-text-editor\" data-id=\"58ac91c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>&#8220;Top down&#8221;<\/strong> is similar to expert judgement based on a high level view of the project requirements. It is useful to try and define the range that the project is likely to be within i.e. probably no bigger than &#8220;X&#8221; and no smaller than &#8220;Y&#8221; and with a duration of approximately &#8220;Z&#8221; months.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a6435b0 elementor-widget elementor-widget-text-editor\" data-id=\"a6435b0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li>Analogy based<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8d06343 elementor-widget elementor-widget-text-editor\" data-id=\"8d06343\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>&#8220;Analogy based&#8221;<\/strong> estimates can be very good if the organisation has good data from previous projects. We often find that data from previous projects is kept but not neccesarily in a format that can be used for comparisons. If there is good project data available then the current estimate can be compared to similar previous projects.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2399e07 elementor-widget elementor-widget-text-editor\" data-id=\"2399e07\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li>Bottom up<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6f413d0 elementor-widget elementor-widget-text-editor\" data-id=\"6f413d0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>&#8220;Bottom Up&#8221;<\/strong> estimates are the most accurate but require that all aspects of the detailed requirements have been completed. This means that a lot of design and analysis work has been completed without knowing if the project will be approved.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bbb0f62 elementor-widget elementor-widget-text-editor\" data-id=\"bbb0f62\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li>Knowledge based<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a644b9d elementor-widget elementor-widget-text-editor\" data-id=\"a644b9d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>&#8220;Knowledge based&#8221;<\/strong> estimates are used where there is domain knowledge data that can be used to understand role, effort ad duration for the elements. Different element volumes can be applied to get the estimate.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-69cc5dc elementor-widget elementor-widget-text-editor\" data-id=\"69cc5dc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li>Parametric<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-abd65af elementor-widget elementor-widget-text-editor\" data-id=\"abd65af\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>&#8220;Parametric based&#8221;<\/strong> estimates use relationships between elements to develop the estimate. The SEER suite of tools uses a combination of knowledge bases and parameters to quickly develop comprehensive cost models.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-aedb31f\" data-id=\"aedb31f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3ce8aaf elementor-widget elementor-widget-image\" data-id=\"3ce8aaf\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.6.5 - 27-04-2022 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"393\" src=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/merit-768x393.png\" class=\"attachment-medium_large size-medium_large\" alt=\"\" srcset=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/merit-768x393.png 768w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/merit-300x153.png 300w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/merit.png 935w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\"><\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7c63748 elementor-widget elementor-widget-image\" data-id=\"7c63748\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"350\" height=\"330\" src=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/dice_small_1.jpg\" class=\"attachment-medium_large size-medium_large\" alt=\"\" srcset=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/dice_small_1.jpg 350w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/dice_small_1-300x283.jpg 300w\" sizes=\"(max-width: 350px) 100vw, 350px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8484759 elementor-widget elementor-widget-image\" data-id=\"8484759\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"482\" height=\"200\" src=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/SEERoutput.jpg\" class=\"attachment-medium_large size-medium_large\" alt=\"\" srcset=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/SEERoutput.jpg 482w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/SEERoutput-300x124.jpg 300w\" sizes=\"(max-width: 482px) 100vw, 482px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">SEER output<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-5442b16 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"5442b16\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a href=\"https:\/\/www.lodestar-as.com\/index.php\/free-assessment\/\" class=\"elementor-button-link elementor-button elementor-size-lg\" role=\"button\" id=\"assessment1\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Click here for a free assessment of your organisation's cost estimating capabilities<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c9b5f67 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c9b5f67\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9ecf8b5\" data-id=\"9ecf8b5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-181f2ac elementor-widget elementor-widget-heading\" data-id=\"181f2ac\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.6.5 - 27-04-2022 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">The journey<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-3e8934e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3e8934e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-1352723\" data-id=\"1352723\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ddcde34 elementor-widget elementor-widget-text-editor\" data-id=\"ddcde34\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Most organisations use home grown MS-Excel spreadsheets to calculate costs. Unfortunately, in many instances, each cost estimator has their own version and they don&#8217;t necessarily share key metrics.Activity based costing in IT has been challenging. Tools like Apptio help but when it comes down to the cost of managing a router, the detail gets a little fuzzy. Most CIOs can tell you that the Server Department can run 50 servers per FTE &#8211; but they also do a lot of other things besides just server monitoring and maintenance.<\/p><p style=\"box-sizing: border-box; margin-top: 0px; margin-bottom: 0.9rem; color: #003f77; font-family: Roboto, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\">While consulting on a very large deal in 2001, it became apparent that suppliers generally don\u2019t have a good understanding of their operational costs. This led to a focus on cost estimation and a journey to understand IT cost estimation and the tools that are available.<\/p><p style=\"box-sizing: border-box; margin-top: 0px; margin-bottom: 0.9rem; color: #003f77; font-family: Roboto, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\">Over the past 20 years, we have looked at a number of organisation\u2019s costing tools. The first thing that became apparent is that they were all MS-Excel based and were \u201ctweaked\u201d based on the project at hand \u2013 a very dangerous practice. The second thing was that different parts of the same organisation will use different cost modelling tools for the same scope.<\/p><p style=\"box-sizing: border-box; margin-top: 0px; margin-bottom: 0.9rem; color: #003f77; font-family: Roboto, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\">There is no formal training or accreditation for IT cost modelling. What seems to happen is that someone will build an Excel model and become the de facto \u201cexpert\u201d in the area.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-95462b8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"95462b8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d9fb055\" data-id=\"d9fb055\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-07fc185 elementor-widget elementor-widget-heading\" data-id=\"07fc185\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">So why is cost estimation so difficult?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-db2375d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"db2375d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e7f7fe1\" data-id=\"e7f7fe1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-f55a2d3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f55a2d3\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-26f1a7d\" data-id=\"26f1a7d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d19fe83 elementor-widget elementor-widget-text-editor\" data-id=\"d19fe83\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>IT projects cover a broad spectrum of technologies and activities:<\/p><ul><li>Regulatory changes and compliance<\/li><li>Replacing obsolete hardware and software<\/li><li>Business changes<\/li><li>Process changes<\/li><li>Different user interfaces<\/li><li>APIs<\/li><li>Software licensing<\/li><\/ul><p>While some items are relatively easy to cost, things like data cleansing are very difficult.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-9ed214e\" data-id=\"9ed214e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1a43fea elementor-widget elementor-widget-text-editor\" data-id=\"1a43fea\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><em>\u201cThe bigger the project, the more risk for potential problems. \u201cIt\u2019s usually a misalignment of expectations on the customer side and on the capability of the service provider.\u201d<\/em><\/p><p>Damien Bailey<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-3b49e26 elementor-widget elementor-widget-text-editor\" data-id=\"3b49e26\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Unfortunately, the estimation process is often subjective and\u00a0<strong>not<\/strong>\u00a0repeatable. The person creating estimates is usually an IT generalist and does not have a good understanding of the complexities and risks associated with the various cost model elements.<\/p><p>Over time the models become more complex and job security is ensured as none of the models are documented.<\/p><p>The models generally focus on the \u201crun\u201d or operational costs associated with IT infrastructure and typically ignore things like documentation, training and Service Desk skills required for the new project.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d0bdba1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d0bdba1\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0cf75de\" data-id=\"0cf75de\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-5b46c19 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5b46c19\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-92cd91a\" data-id=\"92cd91a\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8e993c9 elementor-widget elementor-widget-text-editor\" data-id=\"8e993c9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><em>Galorath Incorporated defines three tribes of cost estimators:<\/em><\/p><p><strong>The Napkins: \u00a0\u00a0<\/strong><em>Ad-hoc, hero driven group of estimators whose past successes are legendary and whose napkin scribbling is taken as gospel.<\/em><\/p><p><strong>The Guts: \u00a0\u00a0<\/strong><em>Feeling and experience oriented group of project managers and workers whose years of experience,good and bad, makes them trusted prognosticators of what will happen regardless of the actual results (tenure benefits of being a survivor).<\/em><\/p><p>\u00a0<\/p><p>\u00a0<strong>The Spreadsheets: \u00a0\u00a0<\/strong><em>Former and current Napkins and Guts members who believe translating their tribal knowledge onto MS-Excel spreadsheets bestows mathematical accuracy and empirical integrity on home grown algorithms.<\/em><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-5145769\" data-id=\"5145769\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1196782 elementor-widget elementor-widget-image\" data-id=\"1196782\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"228\" src=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/Napkin-300x228.jpg\" class=\"attachment-medium size-medium\" alt=\"\" srcset=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/Napkin-300x228.jpg 300w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/Napkin.jpg 500w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-331e35a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"331e35a\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-896679f\" data-id=\"896679f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-6eacde2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6eacde2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-f2746f5\" data-id=\"f2746f5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-03cff01 elementor-widget elementor-widget-text-editor\" data-id=\"03cff01\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3d84801 elementor-widget elementor-widget-text-editor\" data-id=\"3d84801\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\"><div class=\"elementor-widget-container\"><p><strong>Software development<\/strong><\/p><\/div><\/div><div class=\"elementor-element elementor-element-0d6230f elementor-widget elementor-widget-text-editor\" data-id=\"0d6230f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\"><div class=\"elementor-widget-container\"><p>Software development estimates are generally based on \u201cexpert judgement\u201d. For anyone interested in this, we would highly recommend the book \u201cSoftware Estimation \u2013 Demystifying the Black Art\u201d by Steve McConnell. One of the more interesting items in the book is the fact that an accurate cost estimate cannot be delivered until sufficient data is available \u2013 the Cone of Uncertainty.<\/p><p><a href=\"https:\/\/www.castsoftware.com\/products\/imaging\"><strong>CAST Imaging<\/strong><\/a> allows your software teams to:<\/p><ul><li>Automatically discover and see the application architecture<\/li><li>Quickly navigate all components and their dependencies<\/li><li>Respond faster to business needs &#8211; from small changes to modernization<\/li><li>Increase cross-team collaboration and efficiency<\/li><li>Speed up knowledge transfer to newcomers<\/li><li>Keep a living knowledgebase of the application\u2019s inner workings<\/li><\/ul><\/div><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-91a7da6\" data-id=\"91a7da6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9fdf187 elementor-widget elementor-widget-image\" data-id=\"9fdf187\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"554\" src=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/cost-estimating-overview-v3-1024x709.jpg\" class=\"attachment-large size-large\" alt=\"\" srcset=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/cost-estimating-overview-v3-1024x709.jpg 1024w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/cost-estimating-overview-v3-300x208.jpg 300w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/cost-estimating-overview-v3-768x532.jpg 768w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/cost-estimating-overview-v3.jpg 1040w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d8b144b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d8b144b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ef9eab4\" data-id=\"ef9eab4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-dd188f8 elementor-widget elementor-widget-heading\" data-id=\"dd188f8\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Tools<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-eaba8b8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"eaba8b8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c189d8e\" data-id=\"c189d8e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7a6451a elementor-widget elementor-widget-text-editor\" data-id=\"7a6451a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In 2010, a supplier asked us to do a post implementation review of a major bid. We quickly came to the conclusion that they struggled with detailed costing. A worldwide search was then undertaken for cost estimation tools and we became the Australian resellers of the SEER suite of products from Galorath Inc. Given our background, we focus primarily on SEER for IT and SEER for Software.<\/p><p>With the challenges of analysing workloads that can be moved to the cloud, we once again went looking for tools and found CAST Highlight, an amazing tool that takes all the human factor out of software analysis. When coupled with SEER for Software, very accurate estimates can be produced to reflect the time and effort to remediate code in preparation for cloud migration.<\/p><p>While the\u00a0<strong>tools<\/strong>\u00a0are very good, the\u00a0<strong>process<\/strong>\u00a0is critical to improved cost estimation efficiency<\/p><div>The Galorath suite of tools can be found here: <a href=\"https:\/\/galorath.com\/products\/\">SEER By Galorath | Knowledge Based Estimation | Galorath Inc.<\/a><\/div><div>\u00a0<\/div><div>58% of a developers time is spent searching and <br \/>understanding existing code and architecture. <a href=\"https:\/\/www.castsoftware.com\/products\/imaging\">CAST Imaging<\/a> allows application teams to:<\/div><ul><li>Learn application make-up in days vs weeks<\/li><li>Understand end-to-end flows in minutes vs hours<\/li><li>Comprehend app-to-app dependencies in hours vs days<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ee6903d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ee6903d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cde8edc\" data-id=\"cde8edc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f0c2bdd elementor-widget elementor-widget-heading\" data-id=\"f0c2bdd\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Cost estimation maturity<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-db4b09d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"db4b09d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4934bf5\" data-id=\"4934bf5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-94ce2e4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"94ce2e4\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-76f4aac\" data-id=\"76f4aac\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-12ed2b8 elementor-widget elementor-widget-text-editor\" data-id=\"12ed2b8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>As with software development, organisations can be at different levels of cost estimation proficiency.<\/p><p>Very few organisations have implemented a dedicated cost estimation centre (CEC) with the sole purpose of providing IT costings. The CEC supports the CIO and IT to estimate costs for IT projects but can also support Procurement to do an internal costing for an IT project before going to market. This ensures that the stakeholder community are aware of the magnitude of the problem before engaging with the market. Many times we have seen customers having an expectation that a project will cost say $3 million and when they go to market it comes back with a price of $5 million. Unfortunately, what usually happens at that point is to see what can be achieved for $3 million\u2026<\/p><p>The CEC can identify high risk projects as well as projects that have a limited return on investment. Thresholds can be set and these projects can be further reviewed for their viability and benefit to the organisation. A large US government department has implemented this approach and claims to be saving approximately $1 billion per annum by not initiating projects that have a low probability of success<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-cd07257\" data-id=\"cd07257\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7891828 elementor-widget elementor-widget-image\" data-id=\"7891828\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/06\/maturity-1024x576.jpg\" class=\"attachment-large size-large\" alt=\"\" srcset=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/06\/maturity-1024x576.jpg 1024w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/06\/maturity-300x169.jpg 300w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/06\/maturity-768x432.jpg 768w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/06\/maturity.jpg 1280w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9ae55b3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9ae55b3\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ad6b5b8\" data-id=\"ad6b5b8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f62e906 elementor-widget elementor-widget-heading\" data-id=\"f62e906\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Benefits of a Cost Estimation Centre<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-85a8f95 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"85a8f95\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-6788cd8\" data-id=\"6788cd8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8532339 elementor-widget elementor-widget-text-editor\" data-id=\"8532339\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>While the focus of this section relates to IT costing, the Cost Estimation Centre can provide support to the CIO and CFO, business units and procurement.<\/p><p>If services are outsourced, the CEC can provide support for these roles to ensure that the supplier is providing fair prices to assist in negotiation. Importantly, if the project has been costed internally, it will show if the supplier(s) have missed something in their proposal.<\/p><p>The CEC can support the organisation by providing accurate costs for budget purposes and will provide insight into risks associated with a project. The ability to quickly do &#8220;what if&#8221; analysis can show the impact on Cost, Effort, Quality, Duration and Risk.<\/p><p>The CEC also ensures that cost estimation does not become single point exposed to a costing subject matter expert, and that robust processes for initiating, tracking and adjusting estimates are in place.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-60c10d7\" data-id=\"60c10d7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-93c941d elementor-widget elementor-widget-image\" data-id=\"93c941d\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"293\" height=\"300\" src=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/Effort_TimeQetc-293x300.png\" class=\"attachment-medium size-medium\" alt=\"\" srcset=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/Effort_TimeQetc-293x300.png 293w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/Effort_TimeQetc.png 689w\" sizes=\"(max-width: 293px) 100vw, 293px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-658a4a0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"658a4a0\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-87037a7\" data-id=\"87037a7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-aa78673 elementor-widget elementor-widget-heading\" data-id=\"aa78673\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">CEC implementation process<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-fbba96c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fbba96c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-06bdea2\" data-id=\"06bdea2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-a0d3d91 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a0d3d91\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-8470888\" data-id=\"8470888\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2f4fabc elementor-widget elementor-widget-text-editor\" data-id=\"2f4fabc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The start of the CEC implementation process is a workshop with the cost estimators and a review of the tools and processes currently being used. There will also be a focus on the time it takes to do different types\/sizes of estimates and identify issues that may exist.<\/p><p>If there is agreement that improvements can be made, a business case will be developed for executive consideration and approval.<\/p><p>Once approved, mapping of the current state and future state tools and processes will be undertaken and a plan developed to implement.<\/p><p>Good data will be loaded into tools and knowledge bases and, if new tools are used, training the teams in their use.<\/p><p>Establish processes for version control and archiving of cost estimates.<\/p><p>Inform stakeholders of CEC engagement model and go live.<\/p><p>Review after six months to identify any areas that may need adjusting.<\/p><p>Work with the organisation and ensure cost estimates:<\/p><ul><li>are a range that becomes smaller as more data becomes available<\/li><li>are used to validate suppliers bids\/change requests<\/li><li>are used in a standard manner for business unit IT budgets<\/li><li>compare risks at different cost points<\/li><li>assess the least time a project can be completed in<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-71506f7\" data-id=\"71506f7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6f9d146 elementor-widget elementor-widget-image\" data-id=\"6f9d146\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"709\" height=\"1024\" src=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/Current-future-709x1024.jpg\" class=\"attachment-large size-large\" alt=\"\" srcset=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/Current-future-709x1024.jpg 709w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/Current-future-208x300.jpg 208w, https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/Current-future.jpg 720w\" sizes=\"(max-width: 709px) 100vw, 709px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>There are number of different approaches to cost estimation. The challenge is to find a blend of techniques that provides you with a &#8220;rough order of magnitude&#8221; very quickly and as more data becomes available, the estimate can be adjusted accordingly. But before we go there, what exactly is an estimate when we are talking [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>IT Cost Estimation - www.lodestar-as.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lodestar-as.com\/index.php\/it-cost-estimation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IT Cost Estimation - www.lodestar-as.com\" \/>\n<meta property=\"og:description\" content=\"There are number of different approaches to cost estimation. 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But before we go there, what exactly is an estimate when we are talking [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.lodestar-as.com\/index.php\/it-cost-estimation\/\" \/>\n<meta property=\"og:site_name\" content=\"www.lodestar-as.com\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-16T00:25:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/merit-768x393.png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.lodestar-as.com\/#organization\",\"name\":\"LODESTAR Advisory Services Pty Ltd\",\"url\":\"https:\/\/www.lodestar-as.com\/\",\"sameAs\":[],\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.lodestar-as.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/logo.jpg\",\"contentUrl\":\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/logo.jpg\",\"width\":528,\"height\":87,\"caption\":\"LODESTAR Advisory Services Pty Ltd\"},\"image\":{\"@id\":\"https:\/\/www.lodestar-as.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.lodestar-as.com\/#website\",\"url\":\"https:\/\/www.lodestar-as.com\/\",\"name\":\"www.lodestar-as.com\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.lodestar-as.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.lodestar-as.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.lodestar-as.com\/index.php\/it-cost-estimation\/#primaryimage\",\"url\":\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/merit.png\",\"contentUrl\":\"https:\/\/www.lodestar-as.com\/wp-content\/uploads\/2022\/05\/merit.png\",\"width\":935,\"height\":478},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.lodestar-as.com\/index.php\/it-cost-estimation\/#webpage\",\"url\":\"https:\/\/www.lodestar-as.com\/index.php\/it-cost-estimation\/\",\"name\":\"IT Cost Estimation - www.lodestar-as.com\",\"isPartOf\":{\"@id\":\"https:\/\/www.lodestar-as.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.lodestar-as.com\/index.php\/it-cost-estimation\/#primaryimage\"},\"datePublished\":\"2022-05-24T00:15:38+00:00\",\"dateModified\":\"2022-06-16T00:25:41+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.lodestar-as.com\/index.php\/it-cost-estimation\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.lodestar-as.com\/index.php\/it-cost-estimation\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.lodestar-as.com\/index.php\/it-cost-estimation\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.lodestar-as.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"IT Cost Estimation\"}]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"IT Cost Estimation - www.lodestar-as.com","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.lodestar-as.com\/index.php\/it-cost-estimation\/","og_locale":"en_US","og_type":"article","og_title":"IT Cost Estimation - www.lodestar-as.com","og_description":"There are number of different approaches to cost estimation. The challenge is to find a blend of techniques that provides you with a &#8220;rough order of magnitude&#8221; very quickly and as more data becomes available, the estimate can be adjusted accordingly. 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