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IT-Business Skills Training

What's the ROI? How to Quantify IT's Real Value

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What's the ROI? How to Quantify IT's Real Value

What's the ROI? -- One-Day Seminar -- Linking IT to business value is an absolute “must” today. There are proven techniques that enable anyone to do it.  Take seven hours to learn how.

Everyone seems to be talking about “ROI” (return on investment), IT’s “value proposition”, and making IT’s value tangible.  Mostly what stakeholders are saying is “Give me some credible numbers that tell me what I get back for the money you are asking me to spend”.

An important part of the answer stems from traditional financial ROI metrics, e.g. – Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period.  These metrics tell us:  how much a project's future financial benefits are worth today, the rate of return, and how soon we recoup our initial investment.  But, these are only expressions of financial value. 

The really hard values to define are the non-financial returns – IT’s so-called “soft”, “intangible”, or “unquantifiable” value.  This is where IT professionals, business analysts, and even IT stakeholders often draw a blank. 

What’s the ROI? How to Quantify IT’s Real Value shows how to define the worth of IT in terms that decision-makers and other stakeholders care most about.  Participants learn how to:

  • Think of IT in terms of value that matters most to business stakeholders
  • Concentrate on business impact as the real drivers of IT value
  • Cope with uncertainty and “knowledge gaps”
  • Envision IT as a “value creator” instead of a “cost driver”
  • Calculate and Interpret Traditional Financial Metrics Most Often Used For IT Projects
  • Use the IT Value Map to Pinpoint What Really Matters to Business Stakeholders
  • Engage Stakeholders to Quantify Expectations            
  • Use Basic Process Mapping to Link IT to Business Performance
  • Focus on Mining Available Data and Avoiding Data Traps
  • Develop Credible IT Value Measures

Course Topics

Making IT’s Value Visible 

  •  What is IT’s Real Value? What is ROI? Where does financial ROI fit? 

  • Learning to think out of the “comfort zone” – features and functions aren’t enough to prove business value

How to Quantify the Value 

  • Use process mapping to trace key business activities 

  • Choose the most important numbers 

  • Always use existing data first 

  • Measure IT’s impact on the business

Procedure for Defining Any Value 

  • Create the “Value Vision” to identify the value possibilities 

  • Pinpoint which values really matter to stakeholders   

  • Decide which “metrics” are required and which need to be developed 

  • Keep it simple; focus on just a few

Creating and Calculating ROI Metrics 

  • Anyone who understands  the idea of gasoline MPG can do this 

  • Calculating financial ROI doesn’t have to be hard – NPV, IRR, Payback 

  • Creating non-financial “ROI” metrics  

  • Choosing the numbers that show IT’s real value




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