Our project will be evaluated based on the “Project Risk” approach. The project risk approach evaluates several aspects of the project that may result in risk that is detrimental to the completion/success of the project. In addition, we will use several common financial measures to value our project.
Project risk approach includes:
Failure to obtain any, or all, of the anticipated benefits – High – The success of the project is completely dependent on the number of subscribers and how they value the value-added features provided within the application. If the benefits are low, we will lose our subscriber base.
Higher than expected implementation costs – High – The introduction of a brand-new, innovative app may have hidden costs that aren’t foreseeable during the implementation phase.
Longer than expected implementation time – Medium – The longer it takes to implement the application, the more costs we will incur and the less revenue we will make through subscribers.
Resulting systems whose technical performance is significantly below estimate – Low – Location-based functionality, which is common in many successful mobile phone applications, will have the technical performance that we anticipate.
System incompatibility with selected hardware and software – Low – Because we are creating the application ourselves, we have the ability to choose hardware and software that is conducive to the functionality that we seek in our app.
Return on Investment (ROI) – We will measure the investment compared to the number of subscribers to our application (further, the revenue received per subscriber).
Revenue – revenue received per subscriber through charging for value-added features.