Abstract The business value of information technology (IT)
services is often difficult to assess, especially from the point of view of a
non-IT manager. This condition could severely impact organizational IT
strategic decisions. Various approaches have been proposed to quantify the
business value, but some are trapped in technical complexity while others
misguide managers into directly and subjectively judging some technical
entities outside their domain of expertise.
This paper describes a method on how to properly capture both
perspectives based on a probabilistic business-driven model. The proposed
model presents a procedure to calculate the business value of IT services. The
model also covers IT security services and their business value as an important
aspect of IT services that are not covered in previously published researches.
The impact of changes in the quality of IT services on business value will also
be discussed. A simulation and a case illustration are provided to show the
possible application of the proposed model for a simple business process in an
enterprise.
The
business value of information technology (IT) services are often
difficult to assess, especially from the point of view of a non-IT manager.
This condition could severely impact organizational IT strategic decisions.
Various approaches have been proposed to quantify the business value, but some
are trapped in technical complexity while others misguide managers into
directly and subjectively judging some technical entities outside their domain
of expertise. This paper describes a method on how to properly capture both
perspectives based on a probabilistic business-driven model. The proposed
model presents a procedure to calculate the business value of IT services. The
model also covers IT security services and their business value as an important
aspect of IT services that are not covered in previously published
researches. The impact of changes in the quality of IT services on business
value will also be discussed. A simulation and a case illustration are provided
to show the possible application of the proposed model for a simple business
process in an enterprise.
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