ICT ECONOMICS TOPICS 1.
ICT COST MANAGEMENT
2.
ICT PROCESS MANAGEMENT
3.
ICT RISK MANAGEMENT
4.
BUSINESS VALUE OF ICT
5.
ICT GOVERNANCE • •
6. 1
IT DASHBOARD ICT PORTFOLIO MANAGEMENT
ICT OUTSOURCING
ICT ECONOMICS DIFFERENT VIEWS ON COSTS 1.
FIXED COSTS VS VARIABLE COSTS
2.
DIRECT COSTS VS INDIRECT COSTS
3.
COST CATEGORIES • • • •
4.
COSTS RELATED TO PROCESSES / ACTIVITIES • • •
2
LABOUR COSTS HOUSING COSTS SECURITY COSTS OUTSOURCING COSTS
NEW DEVELOPMENT COSTS AND ENHANCEMENTS MAINTENANCE OPERATIONS
ICT ECONOMICS KOSTPRIJS BEREKENING • KOSTENDRAGERS • KOSTENPLAATSEN
• KOSTENVERSLEUTELING • BEGRIP NORMALE BEDRIJFSDRUKTE • INTEGRALE KOSTPRIJS (FULL COSTING) • DIFFERENTIELE KOSTPRIJS (DIRECT COSTING) 3
ICT ECONOMICS TOTAL COST OF OWNERSHIP (TCO)
MAJOR COST CATEGORIES 1.
DIRECT COSTS (BUDGETED)
2.
INDIRECT COSTS (UNBUDGETED)
EVALUATION COST MANAGEMENT STRATEGIES
4
1.
POSSIBLE STRATEGIES
2.
ASSESSMENT STRATEGY IMPACT
ICT ECONOMICS TCO COST CATEGORIES 1.
2.
5
DIRECT COSTS •
HARDWARE & SOFTWARE
•
MANAGEMENT
•
SUPPORT
•
DEVELOPMENT
•
COMMUNICATION FEES
INDIRECT COSTS •
END USER COST (HIDDEN COSTS, ETC)
•
DOWNTIME COSTS
ICT ECONOMICS ICT PROCESSES • NEW DEVELOPMENT & ENHANCEMENTS
• MAINTENANCE
• OPERATIONS
• SUPPORT END USERS (HELP DESK) 6
ICT ECONOMICS ICT PROCESS MANAGEMENT COBIT • PROCESS FRAMEWORK • MANAGEMENT GUIDELINES
CMM : NEW DEVELOPMENT & ENHANCEMENT • 5 LEVELS OF MATURITY • PROCESS IMPROVEMENT GUIDELINES
ITIL: OPERATIONS & MAINTENANCE LINK COBIT, CMM AND ITIL
7
ICT ECONOMICS DEVELOPMENT & ENHANCEMENT 1. CAPABILITY MATURITY MODEL (CMM) • QUALITY MEASUREMENT • PROCESS IMPROVEMENT
2. PRODUCTIVITY MEASUREMENT • FPA
3. BENCHMARKING • INTERNAL • EXTERNAL
4. OUTSOURCING 8
ICT ECONOMICS ONDERHOUDSACTIVITEITEN ONDERSCHEID NAAR AARD VAN DE WERKZAAMHEDEN 1.
TECHNISCH
2.
FUNCTIONEEL
FUNCTIONELE ONDERVERDELING
9
1.
CORRECTIEF ONDERHOUD
2.
PERFECTIEF ONDERHOUD (INCL. PREVENTIEF ONDERHOUD)
3.
ADAPTIEF ONDERHOUD
ICT ECONOMICS POTENTIAL COST DRIVERS MAINTENANCE 1.
QUALITY SYSTEM DOCUMENTATION
2.
SYSTEM SIZE & COMPLEXITY
3.
NUMBER OF INTERFACES
4.
PROGRAMMING LANGUAGE
5.
PROCESSING ENVIRONMENT (PLATFORM)
6.
SYSTEM AGE
10
ICT ECONOMICS ICT RISK MANAGEMENT OPERATIONAL RISK • TECHNOLOGY RISK • SECURITY RISK • FINANCIAL RISK
DEVELOPMENT RISK = PROJECT DELIVERY RISK • TIME COMPRESSION RISK • TECHNOLOGY RISK • FINANCIAL RISK
IMPEMENTATION RISK • ORGANIZATIONAL RISK
RISK ASSESSMENT APPROACHES • MATHEMATICAL: ASSESSMENT IMPACT RISK DIVERS • NON-MATHEMATICAL: QUESTIONNAIRE
11
ICT ECONOMICS RELATION IT INVESTMENTS AND BUSINESS VALUE
MACRO ECONOMIC THEORY: MARGINAL COSTS = MARGINAL RETURNS
CONCLUSION STRASSMAN: RELATIONSHIP CANNOT BE DEMONSTRATED
PRACTICE: KEY METRICS APPROACH (IT DASHBOARD) EXAMPLES: • MEASURING BUSINESS ALIGNMENT ICT • RELATIONSHIP ICT INTENSITY AND SHAREHOLDER VALUE
12
ICT ECONOMICS JUDGEMENT Of ICT INVESTMENT PROPOSALS 1.
1.
13
BUSINESS CASE ANALYSES •
NET PRESENT VALUE = NETTO CONTANTE WAARDE
•
ROI = RETURN ON INVESTMENT
•
PAYBACK PERIOD
•
RISK ANALYSIS
PORTFOLIO ANALYSES •
RISK DIVERSIFICATION
•
AVOIDING OPERATIONAL COST TSUNAMIS IN THE FUTURE
•
BALANCING COSTS AND RETURNS OVER TIME
ICT ECONOMICS JUSTIFICATION INVESTMENT IN ICT-INFRASTUCTURE
CALCULATION ROI / PAYBACK PERIOD, ETC NOT FEASIBLE
ALTERNATIVE: OPTION VALUE APPROACH
14
ICT ECONOMICS ICT GOVERNANCE
EVOLUTION OF ICT-PERCEPTION • ICT: SACRED COW
• ICT: PRODUCTION FACTOR • ICT: BUSINESS ENABLER
CHIEF INFORMATION OFFICER (CIO)
15
ICT ECONOMICS ICT PORTFOLIO MANAGEMENT •
DEFINITIE ICT PORTFOLIO
•
BEHEER KAPITAALGOEDEREN-VOORRAAD (ICT-ASSETS)
• BEHEER ICT-INVESTERINGSPROJECTEN
• MODERN PORTFOLIO THEORY (MTP) VAN MARKOVITZ
16
ICT ECONOMICS GEBRUIK ARCHITECTUUR MODELLEN 1.
BRON VAN INSPIRATIE
2.
COMMUNICATIEMODEL
3.
KADERSTELLEND • • • • • •
17
AUTONOMIE ONDER RANDVOORWAARDEN UNIFORME WERKWIJZE BIJ SYSTEEMONTWIKKELING STANDAARDISATIE INTERFACES STANDAARDISATIE TECHNISCHE INFRASTRUCTUUR UNIFORME DEFINITIE BEDRIJFSGEGEVENS / DATA DICTIONARY ETC
ICT ECONOMICS EXAMPLE IT DASHBOARD FINANCIALS • Change of IT Costs
•
Difference between actual ICT
CUSTOMERS •
Percentage of SLA’s satisfied
•
Percentage of questions successfully handled by the helpdesk
spend and ICT budget • IT Intensity versus Shareholder
Number of incidents causing serious damage to the business
Value
IT OPERATIONS •
•
Observed system availability as %
IT DEVELOPMENT • CMM level development department
of required availability
HUMAN RESOURCES • Mean time to fill vacancy
• Training days per IT Staff employee
•
IT Staff (external) turnover rate
•
percentage sickness absenteeism
SYNERGY • Percentage of Development Budget shared with other Business Units
• Development costs as % of Total IT Costs •
Number of un-resolved audit findings • Backlog as % of total number of
•
Quality level of O & M processes
change requests
• Percentage of O&M Budget shared with other usinessUnits • Per cent increase of standardization on ITinfrastructure
18
ICT ECONOMICS BENCHMARKING WHY BENCHMARKING? INTERNAL BENCHMARKING EXTERNAL BENCHMARKING SERVICE PROVIDERS • GARTNER GROUP • META GROUP • DATAMONITOR • J.P.MORGAN • FORRESTER RESEARCH • ETC
PITFALLS 19
ICT ECONOMICS ICT OUTSOURCING
•
REASONS FOR OUTSOURCING
•
COST / BENEFIT ANALYSIS
•
CONCLUDING THE SLA
•
MANAGING THE SLA
20
PAPERS ICT ECONOMICS IT GOVERNANCE AND PORTFOLIO MANAGEMENT (3 PRESENTATIONS) 1.
J. Spangenberg, R. Peters en E. van Heijningen, Investeren in informatietechnologie rendement op onzekerheid?, De Accountant 106e jaargang (1999 /4)
2.
Alexander Rinnooy Kan , U kunt niet beheren wat u niet kunt meten: IT-dashboardanalyse, kennis en tools tonen stand van zaken, Informatie Jaargang 46 (maart 2004)
3.
Bert Kersten and Chris Verhoef, IT Portfolio Management: A Banker’s Perspective on IT, Cutter IT Journal (2003)
4.
Chris Verhoef, Quantitative IT Portfolio Management: page 3 – 26, Science of Computer Programming, Volume 45 number 1 (October 2002)
5.
Chris Verhoef, Quantitative IT Portfolio Management: page 27- 44, Science of Computer Programming, Volume 45 number 1 (October 2002)
21
PAPERS ICT ECONOMICS IT COST AND SERVICE MANAGEMENT (2 PRESENTATIONS) Algemene inleiding Cost Management: Het effect en belang van invoering, Ferry Johann, Robert Mooijman en Peter Scheffel, IT beheer 1 (februari 2004)
Artikelen voor presentatie en discussie 1.
M. Looijen en G. van der Vorst, Verborgen kosten van ICT: de rest van de ijsberg, Informatie jaargang 40 (oktober 1998)
2.
Maria van der Schaaf en Hugo Meijers, Zin en onzin van TCO: Positionering van een onduidellijk begrip, Informatie jaargang 43 (januari / februari 2001)
3.
Rick Klompé, IT-service als uitgangspunt voor kostenbeheer, Informatie jaargang 45 (maart 2003)
22
PAPERS ICT ECONOMICS IT OUTSOURCING (3 PRESENTATIONS) 1.
Robert Mooijman, De afhankelijkheid van ICT neemt toe, maar moet het ook uw zorg zijn?, Zorgspecial 31 nr. 6 (2004)
2.
Roger Heusschen en Chris Bell, Outsourcing als evolutionair proces beschouwd, IT beheer 2, (februari / maart 2004)
3.
Chris Verhoef , Quantitative Aspects of Outsourcing Deals: Cost, Duration and Financing, page 1 – 17, unpublished paper (2003)
4.
Chris Verhoef, Quantitative Aspects of Outsourcing Deals: Risks, page 17 – 35, unpublished paper (2003)
23
ICT ECONOMICS RAPPORTAGE STRAMIEN DELTA AANPAK
Waar gaat het over Wat wordt daar over beweerd Wat is de redenatie achter de bewering? Welke argumenten en/of feiten worden aangevoerd ter staving van de redenatie
24
