Generating a useful cost analysis requires assessing the goals of your proposed analysis, your audience, and the types of information you have at your disposal, or can get with relative ease. It also requires making a clear assessment of how much time you have to create the analysis - a detailed cost-benefit study prepared for a business case requesting funding for a new repository may require several months of detailed, full-time investigation. A simple assessment of how expensive it would be for an already existent repository with clear, historical budget records going back several years to add a single additional service (such as providing greater manual review of metadata that come from automated user-uploads) will take considerably less time and effort. Thus, you need to ask yourself a number of questions in order to prepare for and implement an accurate cost analysis.
- What kinds of cost analyses can be performed and what are the goals of each of them?
- Which activity or activities do I need include in my cost analysis?
- Is the cost analysis to be retrospective, current or predictive in nature?
- For what period of time do costs need to be assessed? (e.g., how many months or years of cost data do you want to generate?)
- How much time is available to you for your cost assessment?
- How do I measure costs?
- Where do I find discount rates for a multi-year analysis?
- What other people do I need to include in the creation of my analysis?
Last updated on 08/26/13, 9:23 pm by callee