You're estimating what it will realistically cost to implement each opportunity. This estimates total effort, not just build time.
Step 1: Identify Cost Components
For each opportunity, include:
- Design and planning time
- Development or configuration time
- Testing and validation
- Deployment and rollout
- Training and documentation
Don't skip "small" steps.
Step 2: Decide Build Type
Label each opportunity as:
- Configuration of existing tools
- Custom automation
- Custom system build
- Hybrid approach
Custom work increases cost and risk.
Step 3: Estimate Effort by Role
Estimate hours for:
- Engineering or automation
- Data or integration work
- Project management
- Stakeholder review
Use ranges if unsure.
Step 4: Apply Conservative Rates
Use:
- Internal blended rates, or
- Realistic vendor costs
Round up, not down.
Step 5: Add Risk Buffer
Increase estimated cost for:
- High-risk tasks
- Unclear requirements
- System redesign dependencies
A small buffer protects credibility.
Step 6: Final Cost Label
Assign:
- Low Cost
- Medium Cost
- High Cost
Include a dollar range.
What You Should Have Now
✅ Implementation Cost Table
✅ Cost range per opportunity
✅ Notes explaining drivers
Quality Check
- All cost components included
- Rates are realistic
- Risk is accounted for
- Estimates are easy to explain
Next Step: With implementation costs estimated, you're ready to build the ROI projection table.