Document 15114107

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Matakuliah : A0814/Investment Analysis

Tahun : 2009

ASSESING IT PAYOFF:

A CASE STUDY

Pertemuan 25-26

Phase 1 : Exploration

Step 1. Identifyng the Investment Stage

Step 2. Match Approach and Techniques

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Phase 2 : Involvement

Step 3. Identify tangible and intangible metrics

Step 4 and 5. Make business case for IT payoff measurement and ensure customer involvement

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Phase 3 : Analysis

Step 6 : Conduct Analysis

Step 7 : Interpret data for constituents

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Phase 4 : Communication

Steps 8 : Provide Feedback and Actionable Steps

Step 9 : Institutionalize bias for IT payoff measurement

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An Update

• Resulting from the success of the payoff measurement project, several new initiatives in measuring the value of strategic purchasing systems, contract evaluation, and impact of information systems to track medication errors.

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Case

The strategic information sytsem (SIS) supports functions such as contract evaluation, quality management, process redesign, cost allocation, profitability analysis, and clinical treatment effectiveness analysis. The SISs are suported by data from operational financial and billing systems, combined by customer satisfaction and clinical outcomes. Continues investment in SIS has expanded existing functionality as well as added new data and there are proposals for further investment to add functionality and upgrade the technology platforms.

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Occasionally, the organization has been concerned about whether the benefits returned are worth the technology investment, not the least of which is whether or not they are using the tehcnology effectively. While reading an IT payoff article in a trade magazine, the SIS executive said to himself, “I don’t think we have ever tried to see what the technology is contributing to the organization’s bottom line.” He recalled that a manager had once proposed conducting a study, and that proposal was never given attention because the organization had never felt hte need to explore payoff issue?

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Why? The company had been operating at a 10% - 12 % profit margin, well above the industry average. The executive didn’t want to invest in spending time and effort when the bottom line demonstrated that we must have been doing something right! After all, the company’s SIS had been cited in the press as one of the best in the industry. So, why brother?

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At about the same time, another SIS professional notice the debate in academic circles about whether IT dose pay off? As the two SIS executive were working on the proposal, the CIO reported that requests from the user community would require upgrades to the functionality as well as the technology platform for SIS.

The CIO’s office, with assistance from other executives, prepared a proposal for enhanced functionality in the SIS. The first phase of the investment would go for software development and consulting

Services. Because the technology was over a decade old, future sustained investment would be required for migrating the technology platform from mainframe computers to a web-enabled client-server system iwth superior reporting capabilities.

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