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Business Justification in Project Management

Introduction

Business justification always contains the reasons for initiating a particular project. This

is the information that the management needs to be able to authorize any particular project.

Every organization will always aim to create value for money in the projects that are carried out

in the organization. Business justification always contains information relating to costs, the risks

and the benefits as well as the savings that the organization will get from the implementation of

the project. This paper will discuss about the business justification for an organization to invest

its resources on the technology project in the area of database development.

This organization needs a good database to be developed for a number of reasons. First,

due to the fact that the business is growing, there is need to keep track of all the data that is being

used in the organization that is there is need for a centralized system. There is also need to

improve management of matters concerning human resource (Coronel Carlos and Steven Morris

112). A lot of time and money is being wasted in managing the staff records and processing of

data concerning working hours, annual leave and payroll. Due to the increased number of

customers as we increase our market share there is need to manage customer data and build

closer relationships with customers. Lastly, there is need for to ensure efficient inventory
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tracking to ensure that there is no too much to give room for wastage or too little to disappoint

customers and thereby damaging the organizations reputation.

There were several options that were also put into consideration before settling on

developing a database. The first option was to outsource the data management function to one of

the companies that specializes in data management. But due to the fact that some information in

our organization is sensitive and may land in unauthorized hands, this option was therefore not

considered as being most suitable solution to our data management. Another option that was

considered was the cloud system for storing and processing data (Assunção et al 11). This option

was deemed too expensive to put up as it requires more sophisticated equipment and skilled

labor. And therefore, among the three-options database development was chosen as the most

suitable.

There are several benefits which the organization will get by implementing the project.

First, a database system will help in managing critical data at a central point, in more safe way

and more securely. Better human resource management matters will help in saving time and

money. This will help us have more time to concentrate on growing the organization (Laudon

Kenneth and Jane Price Laudon 267). Managing customer data is also very important in todays

business. The database will help to keep customer information at hand and processing their

requests in faster way. By doing this the relationship between the organization and the customers

will be close and beneficial which is good for business. Tracking of inventory in a more efficient

manner will help in avoiding wastage due to overstocking or disappointing of customers due to

under stocking.

There are also several risks that may accompany the implementation. There may arise

operational risks in the case where the database developed fails to meet the organizational
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specific requirements. The complexity of the database system may also pose a risk especially in

any case the organization lacks skilled labor to operate the system (Johnson Peggy 365). The cost

of implementing the project will range from obtaining the required software and hardware which

will depend on the prevailing market price. Also, there will be cost of employing technical

experts who will help on working with the system as soon as it is implemented. Then training

will also be required to help the employees be able to interact with the system. It will take around

two weeks of market search to get a suitable source to obtain the software and the hardware,

another one week for installation and migration of data from the previous system up to the

current system. Lastly, one week for training of staff on how to use the system. There will be

frequent checks in the market for any software updates that may come up to improve the working

of the system so that the system stays up to date.

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Work Cited

Assunção, Marcos D., et al. "Big Data computing and clouds: Trends and future

directions." Journal of Parallel and Distributed Computing 79 (2015): 3-15.

Coronel, Carlos, and Steven Morris. Database systems: design, implementation, & management.

Cengage Learning, 2016.

Johnson, Peggy. Fundamentals of collection development and management. American Library

Association, 2018.

Laudon, Kenneth C., and Jane Price Laudon. Management information systems. Vol. 8. Prentice

Hall, 2015.