Economic Justification of IT Projects 8.46.F3.010.25.1 Olena Venhrina

Teaching the discipline "Economic Justification of IT Projects" is extremely relevant, as in the modern world, information technologies have become a key driver of business and innovation. Any IT project, from software development to the implementation of complex infrastructure, requires significant financial, time, and human investments. In this regard, managers, analysts, and IT specialists face an acute need for the ability to make informed investment decisions.

Mastering this discipline allows specialists not only to develop technical solutions but also to prove their economic feasibility, manage budgets, forecast risks, and ensure maximum return on investment (ROI). The ability to conduct a comprehensive cost-benefit analysis, evaluate alternatives, and present a clear economic justification becomes a decisive factor for successfully attracting financing and strategically developing the company.

Economic justification is a process of analyzing, evaluating, and comparing the costs, benefits, risks, and alternatives associated with an IT project, with the goal of creating a reliable basis for making managerial decisions. The main advantage of this approach is that it helps justify investments to stakeholders, ensure transparency, optimize resource use, and significantly reduce the likelihood of project failure due to financial miscalculations.

The academic discipline "Economic Justification of IT Projects" is intended for higher education students studying at the "Master's" educational-qualification level.

The purpose of the academic discipline is for students to acquire fundamental theoretical knowledge of financial analysis methods and confident practical skills for developing a complete, comprehensive, and convincing economic justification for IT projects of any complexity.

The objective of the academic discipline is the sequential mastery by students of models, methods, and tools for economic evaluation. This includes:

∙            Studying the stages of the IT project lifecycle and their impact on budget formation and cost estimation.

∙            Mastering key financial models and indicators (ROI, NPV, IRR, Payback Period) for assessing investment attractiveness.

∙            Developing skills in conducting Cost-Benefit Analysis (CBA), including the assessment of direct, indirect, tangible, and intangible aspects.

∙            Practical application of methods for identifying, classifying, and managing economic risks.

∙            Assimilating techniques for evaluating alternative solutions, particularly scenario analysis and sensitivity analysis.

∙            Familiarization with advanced cost calculation methods (e.g., Activity-Based Costing, Total Cost of Ownership) and modern software tools for financial modeling.

The subject of the academic discipline is the methods, models, and tools for analysis, financial modeling, risk assessment, and justification of the economic feasibility and efficiency of investments in IT projects.

The object of the academic discipline is IT projects, their lifecycles, financial flows (costs and benefits), and the processes of making investment decisions under conditions of uncertainty and resource constraints.

The learning outcomes and competencies formed by the course are defined in table 1

Table 1

Learning outcomes and competencies formed by the course

where LO2 - to have specialized problem-solving skills in computer science necessary for conducting research and/or implementing innovative activities to develop new knowledge and procedures.

LO4 - to manage complex and unpredictable workflows in the information technology field that require new strategic approaches.

LO5 - to evaluate the performance of teams and groups in the information technology field and ensure their effectiveness.

LO7 - to develop and apply mathematical methods for analyzing information models.

LO19 - to analyze the current state and global trends in the development of computer science and information technologies.

GC01 - capacity for abstract thinking, analysis, and synthesis.

GC02 - ability to apply knowledge in practical situations.

GC05 - ability to learn and master modern knowledge.

GC07 - ability to generate new ideas (creativity).

SC01 - understanding of the theoretical foundations of computer science.

SC04 - ability to collect and analyze data (including large data sets) to ensure the quality of project decisions.