IT Business Value: Efficiently Assessing the IT Business Value of Diverse Investments
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For more information on Intel IT Best Practices, please visit www.intel.com/IT
IT Best Practices: As part of an evolution in how we assess IT business value for investments, Intel IT and Intel Finance have developed a framework that is faster and more scalable than our previous processes. This new Business Value Assessment (BVA) methodology provides a balanced assessment to support budgetary decision making without requiring absolute dollar-value calculations. The BVA uses a survey-based method to determine both financial and nonfinancial performance metrics and then compares those metrics against acceptable risk levels and available resources.
The methodology prioritizes IT projects to get the greatest IT business value from the investments within—and across—various businesses or service areas, such as sales, marketing, product development, factory automation, and business intelligence. Using the Business Value Assessment, Intel IT performed a pilot program to analyze the business value of the entire Sales and Marketing IT portfolio of proposed projects in two weeks—something that could not have been accomplished with previous approaches.
Our BVA method builds on past Intel methods, including new ways to measure “soft value,” such as collaboration and strategic value, to the traditional “hard value” cash benefit measurements.
The BVA survey approach achieves the following:
• A more balanced view of business value compared to prior methods
• Targeted conversations for faster, more effective decision making
• The ability to prioritize IT projects within and across the business
While we continue to refine our methods for assessing IT business value, we have learned that the benefits of this uncomplicated process serve our purpose better than the increased precision that is required from more elaborate and time-consuming processes that are not scalable for prioritizing IT spending.