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COST MANAGEMENT
IN IT PROJECT Tu Pham
CTO @ Eway Viet Nam
CTO @ AdFlex Viet Nam
1
My
Story
Dyno 2014 - Early Stage
Dyno 2017 - Acquired by Eway
Eway 2018 - SMB
Eway 2020 - Holding
3
Source: https://www.business2community.com/strategy/project-management-statistics-45-stats-you-cant-ignore-02168819
4
Source: https://www.business2community.com/strategy/project-management-statistics-45-stats-you-cant-ignore-02168819
一Benjamin Franklin一
“Beware of little expenses.
A small leak will sink a great ship”
5
AGENDA
6
THE COST
What is cost?
Why it matter?
Type of cost?
01
HOW TO SAVE COST?
03
COST MANAGEMENT
Plan
Estimate cost
Determine cost
Monitoring & Control
02
CASE STUDY
04
THE COST
01
Costs are the resources used to make a product. It is expressed in monetary terms.
WHAT IS COST?
8
Why It Matter?
1. Controlling costs is essential to Business Success
2. It is important to point out that production involves cost.
3. Without cost management, companies would lose money or
customers would receive invoices for much more than expected.
9
Why It Matter?
10
TYPE OF COST?
11
DIrect Cost Indirect Cost
12
Fixed Cost Variable Cost Oppotunity Cost
TYPE OF COST?
13
COST MANAGEMENT
02
PLAN - ESTIMATE - DETERMINE BUDGET - MONITORING & CONTROL
16
17
18
19
HOW TO SAVE COST 03
SIMPLIFY BEWARE RISK BEWARE DEBT
HOW?
21
22
PERFORMANCE
MANAGEMENT
EXAMPLE: ENGINEERING TEAM
HIRING -
RETAINING -
TRAINING - FIRING
SHARE VISION &
MISSION
23
CULTURE
24
25
EXAMPLE: CLOUD COMPUTING RESOURCES
REHOST REPLATFORM REFACTOR
26
PROS CONS
Cheap Least Saving
Easy Least Cool
Fast
REHOST
27
PROS CONS
New Tech Takes Longer
Culture Change Culture Change
Greater Saving More Disruption
Less Future
Overhead
REPLATFORM
28
PROS CONS
New Tech Takes Longer
Culture Change Culture Change
Best Saving More Disruption
Real Cloud
Architecture
REFACTOR
29
30
https://www.slideshare.net/rightscale/how-to-set-up-a-cloud-cost-optimization-process-for-your-enterprise?qid=add775a7-9dfc-4db
CASE STUDY
04
INTEL
32
The company needed to reduce supply
chain expenditure significantly after
bringing its low-cost “Atom” chip to
market.
Supply chain costs of around $5.50 per
chip were bearable for units selling for
$100, but the price of the new chip was a
fraction of that, at about $20.
The Path to Cost Through a process of
iteration, they gradually sought out and
eliminated supply chain inefficiencies to
reduce order cycle time incrementally.
Further improvement initiatives
included:
-Cutting the chip assembly test window
from a five-day schedule, to a bi-weekly,
2-day-long process
-Introducing a formal S&OP planning
process
-Moving to a vendor-managed inventory
model wherever it was possible to do so
Corona Pandemic
Layoff Tracker
503 startups w/ layoffs
50337 employees laid off
33
AdFlex
- Cut off 35% Infrastructure
cost of G8 business model
- Cut off 50% cost of AWS S3
storage
34
THANKS!Does anyone have any questions?
tupp@eway.vn

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Cost Management For IT Project / Product