By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

• Competency 1: Describe the practical applications used in organizations brought about by advances in information technology.
  • Discuss the IT project approval process for a business or organization.
  • Describe the financial justifications of an IT project at a business or organization.
• Competency 2: Analyze information technology management concepts.
  • Define concept of internal rate of return.
  • Describe concept of return on investment.
  • Define concept of net present value.
  • Describe the concept of payback period.
• Competency 3: Analyze new concepts and trends in the information technology field.
  • Summarize contemporary concepts of business value.

Assessment Instructions

Before beginning the assessment, choose an organization with which you are familiar. You will assess and document the financial results that an advancement in IT would deliver for this selected company or organization.

Write a paper that addresses the following points. You will need to research some of the concepts to be covered in your paper. A good place to begin your research is with the references provided in the Unit Resources.

1. Discuss the formal IT project approval process established within your selected organization.
2. Describe the financial justifications of implementing an advancement in IT at your selected business or organization.
3. Express the argument for approval of the IT project within the selected organization on the basis of:
   • Traditional financial arguments.
     • Appeal to established policies of key executives (CIO, CTO, CFO, CEO).
     • Perhaps not documented in governance but known by word of mouth.
   • Contemporary philosophies of establishing business value.
     • Appeal to innovative philosophy of one or more key executives.
     • Consider one of the selected readings that establish other contemporary approaches to evaluate.
4. Define and describe the following traditional techniques for establishing financial justification:
   • Define the concept of internal rate of return (IRR).
   • Describe the concept of return on investment ROI).
   • Define the concept of net present value (NPV).
   • Describe the concept of payback period, expressed as a unit of time.

Submission Requirements

Written communication: Written communication is free of errors that detract from the overall message.
APA formatting: Resources and citations are formatted according to APA (6th ed.) style and formatting.
Number of resources: Use a minimum of 3 resources.
Length of paper: Your paper should be 10 pages.
Font and font size: Times New Roman, 12 point.