English
MagyarValuation of IT investments
Today more than ever, corporate decision makers must make the most of scarce resources and at the same time respond to ever-increasing demands for improved performance and new technology. What’s more, high profile IT system failures have raised concerns about why these investments so often fail to live up to expectations. As a result, many IT investment planning processes now require some analysis of the costs and returns expected from that proposed investment.
Some CEO’s are focused on getting funds for some specific IT project; others want high level buy-in for strategic decisions. What they have in common was a need to build an accurate, credible business case. Unfortunately, managers often lack models that can guide them through such analyses – we plan to give this kind of guidance.
Why is it important to assess information technology ROI?
To support the IT investment decision ex ante & ex post – this became more and more important in the current financial environment. The more IT executive tends to use the financial yardsticks of NPV (Net Present Value), IRR (Internal Rate of Return), EVA (Economic Value Added), or break-even analyses, to try to measure the value that IT delivers to create a business case for corporate IT investments.
An extensive financial analysis could serve as a common language between IT managers and business decision makers, between software vendors and investors. This could be a bridge between technology and business reasoning, between IT and corporate strategy. The visible results of IT project must be stated in business terms.
We offer
Cost/benefit taxonomy based on a decade of experience on the field,
A special focus on intangible IT costs and benefits and technology options;
Integrated with the adequate valuation methodology
The expertise to evaluate, communicate and use the results of the financial analysis.
Our methodology refines traditional ROI analysis, using standard financial measures and adding additional modeling and metrics so that technology investments can be more credibly analyzed and assessed.
The IT Business Value Analysis Toolbox
To analyze the business value generated by Your IT project we use a complex valuation system, containing both quantitative and qualitative valuation techniques. The main methods used are the following:
