Aim The aim of this sub work package is to develop a framework to assess the financial drivers and benefits of TI and hence deliver the data needed to support a business case for TI.
Content This task which will be undertaken by QinetiQ and HVR, it will be split into three phases. It will draw upon previous studies in the TI MPA Precursor Study, and will have linkage to the TI Assessment Framework studies in WP 1.4.1.
The first phase will be a data collection exercise aimed at identifying the main cost drivers for Technology Insertion in the air, land, sea and information systems domain. The work will be undertaken jointly by HVR and QinetiQ. The work will include discussions with industry system integrators to understand in generic terms what is feasible and cost effective in terms of TI and what is not. In addition, other case studies will be identified and reviewed to widen the base of knowledge and allow a view of both current and historic cost drivers. Discussion and case study review will also allow the gathering of data relating to the benefits of TI and seek to validate these to ensure they are real and not perceived. The task will have linkage into the Technology Insertion Case Studies undertaken in WP 1.2.4.
The second stage of this task following from the first will be to take the data and create a generic framework to allow rational and independent decisions to be taken at a technical level, of the costs and benefits of down-selecting a particular technology option and will allow the stakeholder community - in particular Customer 1 - to understand the through life implications of a Technology Insertion programme. A review of existing cost benefit models will take place to assess whether an existing system could fit the requirement or whether a totally new framework would be necessary. A facilitated workshop will review the generic framework and refine it to create an initial framework.
It is envisaged that the output of the second stage will not be a working model, rather the framework for identifying the relevant costs and benefits and understanding their relationships. This framework would then form the foundations of a model. The output of this stage will also identify if any existing cost benefit tools could be utilised or amended to fit the TI requirement of measuring the "openness of the system".
The third phase will be for HVR to take the initial framework and develop it into an initial model that has been introduced to stakeholders. HVR currently has a model "Family of Cost Estimating Tools (FACET)" which is a very high level cost estimating tool which requires basic, broad information on a system to establish a cost estimate. HVR propose to build an initial model allowing cost benefit of TI to be established. This will undergo limited stakeholder testing.
Outcome The initial deliverable from this task will be a study report into the initial framework for cost benefit. The report will detail a set of case studies outlining costs and benefits from past projects. It will also identify cost drivers to Technology Insertion, in particular focusing on the systems integration aspects. Should a model be feasible, a final deliverable will be a report detailing a TI Cost Benefit Model.
