2. Value Analysis and Benefit/Risk Methodologies Pertemuan 25-26
Matakuliah : A Strategi Investasi IT
Tahun : 200A
Value Analysis and Benefit/Risk Methodologies Pertemuan 25-26

3. Introduction
Methodologies that can combine qualitative and quantitative measures of IT investment performance by utilizing survey methods
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4. 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
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5. 12 Steps of Value Analysis
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
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6. Advantages and Disadvantage of Value Analysis
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
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7. 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
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8. 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?
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9. 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
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10. 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
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11. Client/Vendor Relationship Risk
Desire to develop partnership
Outsourcing success depend on good service level agreements
Financial stability of vendor
Vendor relationship
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