Matakuliah
Tahun
: A0814/Investment Analysis
: 2009
ASSESING IT PAYOFF:
A CASE STUDY
Pertemuan 25-26
Phase 1 : Exploration
Step 1. Identifyng the Investment Stage
Step 2. Match Approach and Techniques
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Phase 2 : Involvement
Step 3. Identify tangible and intangible metrics
Step 4 and 5. Make business case for IT payoff
measurement and ensure customer involvement
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Phase 3 : Analysis
Step 6 : Conduct Analysis
Step 7 : Interpret data for constituents
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Phase 4 : Communication
Steps 8 : Provide Feedback and Actionable Steps
Step 9 : Institutionalize bias for IT payoff measurement
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An Update
• Resulting from the success of the payoff measurement
project, several new initiatives in measuring the value of
strategic purchasing systems, contract evaluation, and
impact of information systems to track medication errors.
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Case
The strategic information sytsem (SIS) supports
functions such as contract evaluation, quality
management, process redesign, cost allocation,
profitability analysis, and clinical treatment effectiveness
analysis. The SISs are suported by data from operational
financial and billing systems, combined by customer
satisfaction and clinical outcomes. Continues investment
in SIS has expanded existing functionality as well as
added new data and there are proposals for further
investment to add functionality and upgrade the
technology platforms.
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Occasionally, the organization has been concerned
about whether the benefits returned are worth the
technology investment, not the least of which is whether
or not they are using the tehcnology effectively. While
reading an IT payoff article in a trade magazine, the SIS
executive said to himself, “I don’t think we have ever
tried to see what the technology is contributing to the
organization’s bottom line.” He recalled that a manager
had once proposed conducting a study, and that
proposal was never given attention because the
organization had never felt hte need to explore payoff
issue?
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Why? The company had been operating at a 10% - 12 %
profit margin, well above the industry average. The
executive didn’t want to invest in spending time and
effort when the bottom line demonstrated that we must
have been doing something right! After all, the
company’s SIS had been cited in the press as one of the
best in the industry. So, why brother?
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At about the same time, another SIS professional notice the debate
in academic circles about whether IT dose pay off? As the two SIS
executive were working on the proposal, the CIO reported that
requests from the user community would require upgrades to the
functionality as well as the technology platform for SIS.
The CIO’s office, with assistance from other executives, prepared a
proposal for enhanced functionality in the SIS. The first phase of
the investment would go for software development and consulting
Services. Because the technology was over a decade old, future
sustained investment would be required for migrating the
technology platform from mainframe computers to a web-enabled
client-server system iwth superior reporting capabilities.
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