Final answer:
The economic justification process for a new IT initiative does not include developing value propositions for each option, but it does involve assessing business requirements, performing a cost/benefit analysis, and addressing potential objections.
Step-by-step explanation:
The economic justification process for a new IT initiative involves multiple critical steps but does not include developing value propositions for each option; this is part of the decision-making process after economic justification has been established. Instead, part of the justification process is to assess the business requirements. Analyzing the business requirements is necessary to determine if the IT initiative aligns with the company's strategic goals and will deliver value. This assessment focuses on understanding the needs that the new IT initiative aims to fulfil and how it will do so efficiently and effectively.
An essential part of the justification is also performing a cost/benefit analysis. In this analysis, comparing marginal costs against marginal benefits will help in understanding the economic viability of the initiative. A cost/benefit analysis is a structured approach to quantify the inputs and outputs of a decision, often visualized using a T-chart to contrast costs against benefits.
Lastly, addressing potential objections is a crucial part of the justification process as it preempts challenges and questions that stakeholders might have, reinforcing the initiative's need and value.