There are many approaches available for determining the “value” of an IT project, but these
exercises are usually part of a decision process. A general rule is that for any new implementation
there should be an increase in revenue, decrease in costs, or some measured value (such as ROI).
This is fine for new implementations, but what about after the implementation; does the IT
processing have any value? Intuitively we know the computing envelope provides value to the
business, but the real question is how much?
The issue is how to measure something that appears to have no apparent means of measurement. In
some cases, the something might be a necessary “evil” that ensures the viability of the business
(such as a customer support group or an information web site). While there are no traditional means
to perform these valuations, one can look to the legal environment for an answer: Forensic
Economics. The legal environment has long required the ability to value something that at first glance
has no apparent means in which to determine a value.
In this session we will:
-- Define Forensic Economics
-- Review some of the techniques of Forensic Economics
-- Define the link that IT has to business value
-- Discuss how the business value of IT can be determined using Forensic Economic techniques
-- Work through a simple example of an IT enabled process