Matakuliah : A0784 - Strategi Investasi IT Tahun : 200A Value Analysis and Benefit/Risk Methodologies Pertemuan 25-26 Introduction • Methodologies that can combine qualitative and quantitative measures of IT investment performance by utilizing survey methods Bina Nusantara University 3 Value Analysis Methodology • Involves prototyping and surveying to determine the value of benefits of IT investment • May be utilized initially at evaluation and selection stage • Begins with proposing IT prototype and determining cost • May be compared to feasibility study in systems development life cycle • Based on making value-costs assessment of proposed IT investments • Provide framework to incorporate intangibles into analysis Bina Nusantara University 4 12 Steps of Value Analysis 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Propose IT prototype and determine its cost Identify and value benefits of prototype Compare value of benefits with cost of prototype Design and build prototype Test prototype and measure its use Propose new prototype and determine its cost Identify benefits of new prototype Value benefits of new prototype Compare value of benefits with cost of new prototype Redesign and build new prototype Test new prototype and measure its use and costs Repeat step 6 – 11 as necessary Bina Nusantara University 5 Advantages and Disadvantage of Value Analysis Advantages : • Emphasizes the value of benefits over costs and evaluation of costs and benefits are kept separate • Considers intangible benefits that surrogate measures do not have to be defined and measure • Prototyping accompanying decreases risk associated with investing in IT Disadvantage : • Should not be used for investments that are large and considered to be capital investments Bina Nusantara University 6 Benefit/Risk Analysis Methodology • Benefits and risks of IT investment are assessed and compared to determine if the benefits outweigh the risk • Provides framework that may be used to examine benefits and risk then assessing its impact and cost Bina Nusantara University 7 Project Risk Assessment • Project size • Experience with technology • Project structure Using questionnaire See Table 1-3 • Are the benefits large enough in comparison to risk? • Can affected parts of organization survive if project fails? • Are appropriate alternative IT investments considered? Bina Nusantara University 8 Delivery and Enablement Risk • • • • • • Service availability Delivery of end-to-end solution Ability to accommodate changes Ability to transfer existing data Data security and integrity Disaster recovery, back-up and restore procedures Bina Nusantara University 9 Management and Operation Risk • • • • • • • Reduce cost of ownership Eliminate the problem of managing IT Gain access to IT skills Achieve greater visibility of IT costs Improve customer service External more cost-effective than traditional outsourcing Greater flexibility of outsourcing software applications Bina Nusantara University 10 Client/Vendor Relationship Risk • Desire to develop partnership • Outsourcing success depend on good service level agreements • Financial stability of vendor • Vendor relationship Bina Nusantara University 11