Business Cases & Pricing Models

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There is a continuous pressure to reduce head count because of the need to reduce OPEX budgets. By focusing on pricing around Deliverables, the Client is able to capitalize the deliverables

 Most organizations complain about how long it takes IT to deliver projects. There are two big issues that cause these delays – how long it takes to onboard personnel and that the actual process to create and implement solutions 

 there are two different types of Architectural activities that need to be considered: Solution and Enterprise Architecture. There will be times that the client would need guidance on what the end product needs to be 

 There are situations where fixed deliverables are not appropriate (e.g. mentoring, consulting, unique deliverables, etc.). In these cases, a T&M price structure will be used, and the hours will be deducted from the RETAINER. The intent is to forecast before initiation but that may not always work 

 By working with a Fixed Price model, the Client can move the budgets from OPEX to CAPEX easily. The Fixed Price for each architecture activity will be provided before the activity begins. Once the work product is delivered and approved by the Primary Stakeholder, the Fixed Price will be deducted from the RETAINER. This approach is best for Solution Architecture activities. We have equations for all catalog items (see Figure 1 below for example) 

 By contracting with ECSA with a Retainer approach, the funds are set up at the beginning of the relationship. A Retainer allows for a reduction in the time it takes to begin Architecture activities simply because the activities are triggered by a request. Retainers also encourage the development of a long-term relationship between ECSA and the Client