book

IT Payoff, The: Measuring the Business Value of Information Technology Investments

by Sarv Devaraj, Rajiv Kohli

March 2002

Intermediate to advanced

192 pages

3h 52m

English

Pearson

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IT Payoff: A DialogReasons for IT Payoff MeasurementCompeting InvestmentsDuration of PayoffOverall Economic PictureHow Has Investment in IT Been Measured Thus Far?ProfitabilityProductivityCustomer ValueIT Payoff: A Case for Continued Investment?
Factors Contributing to the IT Productivity ParadoxAnecdotal EvidenceA Snapshot ViewIsolating the Effect of ITLevels of AnalysisAggregated AnalysisComplementary FactorsDoes the Paradox Still Exist?Moving Beyond the Paradox?
Why is Strategy in IT Planning Important?What is Strategy?Developing a StrategyLooking OutwardLooking InwardWhat To Look ForConnecting the Dots
Timing is EverythingUnrealistic ExpectationsManagement SupportExplicit Payoff MetricsInfrastructureAre You Ready for Integration?Training
Let’s Talk TheoryAdvantages of Variance and Process ApproachesProcess Approach: A DiscussionProcess Approach: An ApplicationCombining Process and Variance ApproachesSummary
Immediate versus Lagged MetricsProductivity, Profitability, and Customer ValueA Balanced and Inclusive ApproachCustomer PerspectiveInternal Business PerspectiveInnovation and Learning PerspectiveFinancial PerspectiveFinal Thoughts on the Balanced ScorecardRecommendations
Is There Evidence for the Existence of Technology Curves?Drawing an S-Curve (adapted from Foster )ImplicationsPayoff Depends on the Position on the Technology CurvePay Attention to S-Curves of New TechnologiesBecome Comfortable with Rendering Your Product ObsoleteRecognize Competitors in Related FieldsReduce Market Acceptance TimeTechnology Trend CurvesDisruptive TechnologiesTechnologies of the Future
The Real Options ApproachEconomic Value AddedStatistical Approaches

Phase I: ExplorationPhase II: InvolvementPhase III: AnalysisPhase IV: Communication
Data, Information, and KnowledgeE-Loyalty: Your Payoff in Online CommerceA Model for E-LoyaltyE-commerce PayoffLooking to the Future: Challenges in IT Payoff Assessment
Phase I: ExplorationStep 1: Identifying the Investment StageStep 2: Match Approach and TechniquesPhase II: InvolvementStep 3: Identify Tangible and Intangible MetricsSteps 4 and 5: Make Business Case for IT Payoff Measurement and Ensure Customer InvolvementPhase III: AnalysisStep 6: Conduct AnalysisStep 7: Interpret Data for ConstituentsPhase IV: CommunicationStep 8: Provide Feedback and Actionable StepsStep 9: Institutionalize Bias for IT Payoff MeasurementAn UpdateConclusion
RecapAn Action PlanHow to Implement a Measurement SystemSecuring Organizational and Management CommitmentBuilding Data Partnerships with Constituencies Inside and Outside the OrganizationGathering DataAnalyzing DataCapitalizing on the Cascading Effects of IT PayoffBuilding an Infrastructure for Ongoing IT Payoff AnalysisIntegrating IT Payoff Results in Managerial and Strategic Planning and Decision Making

Content preview from IT Payoff, The: Measuring the Business Value of Information Technology Investments

Chapter 6. Technology Payoff Metrics—Balanced Multiple Objectives

	“When you can measure what you are speaking about, and express it in numbers, you know something about it, but when you cannot measure it, your knowledge is of a meager and unsatisfactory kind.”
	--Lord Kelvin

What is a metric? Metric is a term that relates to measurement. The objectives of establishing metrics are for tracking and evaluating performance, benchmarking, feedback, and organizational improvement. Measures can be ROI on a new decision support system or the number of lines of error-free code for an IT solutions provider. Very simply, it is a characteristic of a system, organization, or process that can be measured and expressed in numbers. The two broad categories of ...

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Publisher Resources

ISBN: 0130650749Purchase book