Length of the Transition Period

The length of the transition period has a major impact on costs. The actual time taken depends greatly on several factors. Organizations moving to new, relatively untried platforms and technologies need to allow for longer periods to shake down the new system and test its stability in the production environment. Depending on the size and requirements of the organization, as well as application workloads, transitions can take five years or more. A protracted transition period means that operating costs (e.g., software, hardware and software maintenance, personnel, cost of capital) are substantial even before a new system goes into normal operations. Parallel operations costs (i.e., maintaining the existing system in production) can also increase if the transition period is extended.

All these factors make it important that IS managers set precise dates for the transition process, beginning with the start-up of a new system in test mode and ending with the shutdown of the old system. This approach (shown in Exhibit 5) allows for more accurate five-year costing.

Exhibit 5. Measurement Periods for Comparative Costing

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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