Business Value Solution
Ensuring that appropriate capital budgets are available for IT may prove a difficult task, since IT investments are often measured against other types of revenue-generating investments that are better understood by senior management.
IT Managers need a means to demonstrate the business value of IT. PAT’s business value solution is an economic assessment and measurement framework to help an organisation align IT solutions with business imperatives and then to quantify the direct financial benefits of those solutions.
Ninth Wave developed the business value solution for PAT in order to provide a structured approach that helps IT managers link IT decisions to business issues that are important to their organisations. The process model consists of six distinct steps:
Step 1 – Identify Business Goals
Start by identifying issues that are important to the stakeholders of the organisation. This enables IT decisions to be aligned with the issues that are critical to the organisation’s success and ensures focus only on those factors that are critical to the organisation’s ability to meet its goals.
Step 2 – Identify Business Activities
The next step is to identify which business activities need to be changed in order to address the organisation’s identified Critical Success Factors.
Step 3 – Identify Business Solutions
The next step is to identify and define solutions in terms of how technology may help improve critical business activities. Solutions may then be linked to IT delivery projects.
Step 4 - Identify Business Risks
The next step is to identify and measure areas of uncertainty – risks – in the business case. These risks include, but are not limited to, standard IT risks.
Step 5 – Identify Business Benefits
The next step is to estimate potential benefits and the costs associated with realising those benefits. The benefits and costs are depicted in a traditional cash flow projection for each solution.
Step 6 – Benefit Analysis
Once the information has been collated and analysed, the business case for the IT investment can be constructed. The cash flows (which may be discounted and risk-adjusted) can be represented in the financial metrics used by the organisation and may be used to track actual achievement and benefit delivery over time.
Resource Management (Based on a Role and Skill framework)
Portfolio Management (Dynamic Project Grouping)
Project Forecasting (Based on an Earned Value framework)
Ensuring that appropriate capital budgets are available for IT may prove a difficult task, since IT investments are often measured against other types of revenue-generating investments that are better understood by senior management.
IT Managers need a means to demonstrate the business value of IT. PAT’s business value solution is an economic assessment and measurement framework to help an organisation align IT solutions with business imperatives and then to quantify the direct financial benefits of those solutions.
Ninth Wave developed the business value solution for PAT in order to provide a structured approach that helps IT managers link IT decisions to business issues that are important to their organisations. The process model consists of six distinct steps:
Step 1 – Identify Business Goals
Start by identifying issues that are important to the stakeholders of the organisation. This enables IT decisions to be aligned with the issues that are critical to the organisation’s success and ensures focus only on those factors that are critical to the organisation’s ability to meet its goals.
Step 2 – Identify Business Activities
The next step is to identify which business activities need to be changed in order to address the organisation’s identified Critical Success Factors.
Step 3 – Identify Business Solutions
The next step is to identify and define solutions in terms of how technology may help improve critical business activities. Solutions may then be linked to IT delivery projects.
Step 4 - Identify Business Risks
The next step is to identify and measure areas of uncertainty – risks – in the business case. These risks include, but are not limited to, standard IT risks.
Step 5 – Identify Business Benefits
The next step is to estimate potential benefits and the costs associated with realising those benefits. The benefits and costs are depicted in a traditional cash flow projection for each solution.
Step 6 – Benefit Analysis
Once the information has been collated and analysed, the business case for the IT investment can be constructed. The cash flows (which may be discounted and risk-adjusted) can be represented in the financial metrics used by the organisation and may be used to track actual achievement and benefit delivery over time.
Resource Management (Based on a Role and Skill framework)
Portfolio Management (Dynamic Project Grouping)
Project Forecasting (Based on an Earned Value framework)