Measurement of IT value delivery
To measure the IT business value in a simple, agile, practical and applicable way to small and medium size companies.
- Simplify the method / process / procedure for assessing the business impact of IT investment.
- Propose a simple measure for IT investment scoring.
- Use simple metrics and measures in order to calculate the business value of an IT investment.
- Take elements from different frameworks to build a model and a methodology to assess the value of IT to the business in small and medium enterprises.
- Framing the model and the methodology proposed above, in the process of enterprise architecture, tailored to small and medium enterprises.
The critical value path method in determining the IT business value:
The project aims to create a model that integrates some elements from different frameworks and mainly uses business, application, data and infrastructure architectures in order to identify critical value units (CVU) and the critical value path (CVP). This CVU is the identification of the key elements for each level of architecture that give value to the business. The CVP could be interpreted as the sum of the different CVU found in all four architectures (business, app, data, and infrastructure) plus the value found in the relationships between each CVU (if any).
Also the project aims to create a method to
- Clearly identify the most relevant metrics or measures within a very small set of them.
- Identify intangible benefits in order to convert them to tangible values so they can be used in IT investments valuation.
- Propose the value view creation based on IT BSC and IT Value Network frameworks for each CVU.
- Determine the CVU’s final value for each view for each IT investment.
- Identify key business areas or business topics to be improved so they can trigger cost savings or revenue increases. Easily justify an IT investment in terms of both variables (revenues and costs).
- Use business valuation techniques to help you determine the value of the UCV and find potential "gaps" in determining the value of the current IT investment.
- Use the “critical value path” and “critical value unit” concepts as core pillars for building the model and the methodology for measuring the business value of an IT investment.
A Model for measuring nonfinancial IT value delivery:
We want to construct a proposals with IT investments as central axis, demonstrating that IT enables value delivery. On detail and taking into account the most studies are focused on enterprises for profit, this project wants to raise the importance of nonprofit organizations, making special emphasis in nonfinancial variables measurement.
Construct a methodology for measuring potential and real value delivery from IT investments