ITROI


Determining and delivering business value
1 Day Intensive Seminar Workshop


Show me the money!” Companies are demanding detailed evidence of IT investments’ financial value. Yet, few in IT know how to calculate or communicate, let alone deliver, Return on Investment (ROI). Moreover, traditional ROI calculations may tell only part of the necessary story, and several proprietary alternative techniques are being touted. The difficulty is greatest in areas like testing, where benefits often seem intangible and crunched time places a premium on flexibility. This interactive workshop shows how to define, calculate, and convincingly communicate the business value of IT investments, both for IT projects as a whole and for specific technical approaches, such as test automation. Exercises enhance learning by allowing participants to practice applying practical techniques to realistic examples.


Participants will learn:


  * The financial information that business decision makers need and demand.
  * ROI and related calculations, strengths and weaknesses.
  * Identifying the full set of costs and benefits.
  * Quantifying intangibles, risk, and flexibility.
  * Presenting and reporting business value measurements so people pay attention.


WHO SHOULD ATTEND: This course has been designed for managers, analysts, designers, programmers, testers, auditors, and users who are concerned about the efficiency and effectiveness of software development and support.


 

WHAT MONEY HAS TO DO WITH IT

  • What’s the value of testing
  • When we don’t show the value
  • State of the industry, demand vs. delivery
  • Language of business decision makers
  • Investment vs. expense
  • Justification vs. analysis
  • Return on Investment (ROI) calculations
  • Payback period
  • Internal rate of return (IRR)
  • Net present value, discounted cash flow
  • Issues with short-term, cost-based measures
  • Opportunity costs
  • Managing an IT project portfolio
  • Economic Value Added (EVA)
  • MS Rapid Economic Justification (REJ)
  • Giga’s Total Economic Impact (TEI)
  • Reconciling the alternative approaches
 

DETERMINING MEANINGFUL BENEFITS

  • Why it’s important to find the benefits first
  • Comparing alternative scenarios
  • Linking to business strategic objectives
  • Without clear rationale and documentation
  • When tactics are all that matter
  • Identifying key performance indicators
  • Taking the customer’s perspective
  • Customer satisfaction vs. loyalty
  • Translating intangibles into money
  • Justifying testing or other specific activity
  • Earlier is cheaper orders of magnitude
  • Cost of quality
  • Implementing and upgrading infrastructure
  • Market window of opportunity, web time
  • Better management information
  • Automated vs. manual methods

 

ESTIMATING CREDIBLE COSTS

  • Top-down vs. bottom-up techniques
  • Function points, LOC, other size measures
  • Relevant testing cost drivers
  • One-time and ongoing, fixed vs. variable
  • Technical, business unit, customer impacts
  • Providing for flexibility and responsiveness
  • Factoring risk in dollar terms
 

MONITORING AND REPORTING

  • Tracking performance indicators
  • Describing testing status in business terms
  • Catching discrepancies early
  • Dashboard and scorecard-type notification
  • Adjusting appropriately during project
  • Charting techniques and tips
  • Capturing project actuals
  • Effectiveness vs. efficiency
  • Analyzing and improving


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