Unmasking Nine Hidden Budget Busters in Your GIS Project
By Nirav Shah

You have probably heard the horror stories about organizations whose GIS development costs ran so far over budget that there was no money left to complete the GIS, much less use it. These budget disasters, I am sorry to say, happen more often than we know. Even worse, many of these failed projects involved GIS consultants who did not adequately assess their client's specific needs at the outset.
      Ninety percent of budget problems that occur during GIS development, population and data conversion result from poor planning. By considering your current and future GIS application requirements before you begin GIS implementation work, you can develop a GIS that your organization can afford to use, maintain and upgrade one year from now and 10 years from now.
      The following is a list of common GIS budget busters that you can avoid by carefully planning your GIS implementation:

Lack of big picture planning
Too many GIS databases are designed with only one application in mind. With few exceptions, once one department develops a GIS, another wants to use it for another purpose. You must determine in advance what applications your GIS will be performing. Ask everyone in your entire organization what they will want from the GIS in five to 10 years. This is critical because your software, hardware, and database design are chosen based on application needs.

Inflexible conversion schedules
Experienced conversion vendors can probably create data files faster than you can handle them. Beware, if you ask the vendor to cease production for a few months while you catch up, you may be hit with a $50,000 "re-mobilization" fee. Make sure your contract allows for work suspension with reasonable notice.

No change order control
Even with excellent planning, you will alter your GIS implementation. Spell out in your contract exactly how much extra the vendor will be paid for additional services.

Choosing software that requires major customization
Nearly every GIS software will require some minor customization, but many packages now have integrated application capabilities. Consider your intended GIS applications and shop for a software with those applications built in. A package with integrated applications will probably cost more, but weigh that against a customization project that easily can run $100,000.

Using the wrong data source
Too many organizations create databases only to find the maps they used lack the scale or accuracy necessary for accomplishing their objectives. Before the start of database population, ask other GIS managers in your industry what data fulfills application needs similar to yours. If your application is really unique, conduct a small GIS pilot to make sure the data gives you the answers you want.

Lack of internal cooperation
Many an organization has been unpleasantly surprised to find the digital base map they just paid $500,000 to create already resides in another department. Especially in government sectors, ask around and see if the data you want already exists. Cooperation may not come easily. Don't be afraid to seek political pressure from your local government officials to mandate formation of a GIS Task Force or similar committee. Avoiding duplication of data saves taxpayer money.

Wrong software vendor selection
Software developers sometimes go out of business, leaving clients with little or no support. When choosing software, take into account the company's market share and financial stability to ensure they will be around a decade from now. Ask for their financial statement. If it's good, they will send it to you.

Sticking with existing equipment
Weigh the cost of purchasing new hardware versus the productivity of your existing equipment. You may find that a new $5,000 plotter takes less staff time to operate than your existing machine.

Over-purchasing hardware
If your organization is small enough to use PCs and you do not foresee considerable growth, don't buy a workstation. The cost of workstation software and peripherals runs about five times more than for PCs. But be careful: if you choose PC software, be sure it can perform your applications.

About the Author:
Nirav Shah is president of EI Technologies in Aurora, Colo., a full-service GIS consulting firm. He may be reached at 303-750-8084 (phone); 303-750-8488 (fax); email: [email protected]. You can also visit the EI Technologies Web Site at http://www.eitek.com.

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