Investment Plan Assignment

You have been asked to decide the IT investment plan for the IT department of ACME Engineering.

You must deliver to the executive committee your recommendation for the investment for the year 2022.

The plan will be a seven page document

Page 1: Introduction and restatement of the priorities and why they are the IT priorities

Page2: List of major investments to be made

Page3: Major investment 1 - with a business case

Page 4: Major investment 2 with a business case

Page 5: List of remaining investments

Page 6: Total summary of return on investment for the IT projects in the portfolio

Page 7: Risks to be accounted for and contingency plans

Info on ACME

ACME provides tailored engineering services for small homebuilding companies across the US. It is currently base in Peoria, IL.

It is a very customer satisfaction driven business.

The contracts they receive are many, and not all that large.

ACME is an engineering company with 500 employees. 100 of them are sales and administration, 400 are engineers executing the service contracts.

ACME is transitioning from work in the office to completely work-at-home. They expect the transition to begin in 2022 and be complete by 2023. They plan to provide new workstations to employees.

The company data is currently housed in a data center, but they plan to move to the cloud. The decision on cloud provider will be made some time later this year. The transition will happen in 2022 and 2023. Even after the transition, though, there are two major servers that house older applications that will be need to be maintained at the on-premises data center until 2040.

Both the cloud move and the work from home move are intended to reduce the cost per hour for engineering. This is to make the business more competitive.

Existing application licenses total $350k per year. Renewals are up next year. We don't know what the new price will be, but we expect 5-10% increase.

The IT staff at the data center costs $400K per year. Our IT support staff are $1.2M per year. Other admin in IT is $1.3M per year.

The IT budget for 2022 is planned at $4.5M