IT value Flashcards
1
Q
Funding IT resources
A
Chargeback
Allocation
Corporate budget
2
Q
Costs
A
Activity based costing
Total cost of ownership
3
Q
Business cases (definition and purpose
A
The business scenario behind the investment
Purpose
- obtain funding approval
- enable priories to be set among different investments
- identify how the combination of IT and business changes will deliver
- Ensure commitment from business managers to achieving the investment benefits
- Create a basis for reviewing whether the expected business benefits are actually realized
4
Q
Six stage approach to developing a business case
A
- Define business drivers and investment objectives
- identify benefits, measures and owners
- Structure the benefits
- Identify organizational changes enabling benefits (MODEL)
- Determine the explicit value of each benefit
- Identify costs and risks (BDN model)
5
Q
9 Valuation methods
A
ROI, NPV, EVA, Payback analysis, IRR, Weighted scoring methods, prototyping, game theory, simulation
6
Q
Types of investment
A
Problem-based intervention
Innovation-based intervention
7
Q
Benefits dependency network
A
IT enabler, change, business change, benefit, Investment objectives
8
Q
Enterprise system benefits framework (+ model for perceived net benefits)
A
Operational, managerial, strategic, IT infrastructure, organizational
