Titulo Estágio
Synergistic IT Value Assessment
Áreas de especialidade
Sistemas de Informação
Local do Estágio
DEI-FCTUC
Enquadramento
Assessing the business value of information technologies (IT) is a priority for companies worldwide. The topic has been studied for decades, but even now “[e]valuation of IT value is challenging due to the complex nature of IT impacts and multifaceted interpretations of value” (Töhönen et al., 2020).
Examples of traditional methodologies for measuring the value of IT investments include (Symons, 2006): Business Value Index (BVI), Total Economic Impact (TEI), Value IT (Val IT, which is related to COBIT), and Applied Information Economics (AIE). Some authors have addressed the direct economic benefits of IT (e.g. ROI, cost reduction) but this vision has been criticized for missing the intangible and indirect outcomes (e.g. decision support, environmental, or social). The more recent “synergistic perspective” argues that “value” is the result of multiple factors (e.g. people, process, technology; exchange, instrumental, and use; structure vs behavior; realized vs potential) but its measurement is problematic (Töhönen et al., 2020).
IT managers are accountable for important budgets. Therefore, how to justify digital transformation (e.g. artificial intelligence, blockchain, internet of things), classify costs (e.g. distribution of cloud investments by the different departments), monitor the daily impact of IT, and report it to the CEOs are important elements of their agenda. Yet, according to a recent Deloitte study “65 percent of respondents [Global CIO Survey] said they measured the impact of IT investments on a case-by-case basis, rather than as part of a regular reporting process. Clearly, CIOs and CFOs are not on the same page when it comes to assessing the value IT delivers” (Deloitte, 2020).
Synergistic IT Value Assessment is the main topic of this master's thesis.
References
Deloitte (2020). Finance and the future of IT. Source: https://www2.deloitte.com/us/en/insights/focus/tech-trends/2020/future-of-it-and-finance-funding-innovation-at-the-speed-of-agile.html [last accessed 12/06/2020]
Symons, C. (2006). Measuring the business value of IT. Forrester Research, Inc. Cambridge, Massachusetts, USA.
Töhönen, H., Kauppinen, M., Männistö, T., & Itälä, T. (2020). A conceptual framework for valuing IT within a business system. International Journal of Accounting Information Systems, 100442.
Objetivo
The main objectives of this work are:
1. Compare different methodologies available for measuring the business value of IT.
2. Propose a synergistic IT value assessment framework and test it in a real scenario of digital transformation investments.
3. Develop a software application prototype to assist companies in IT value analysis.
Competencies to be developed by the student:
1. Knowledge about IT management and governance practices (e.g. IT budget and planning, cost management, benefits reporting).
2. Contact with literature review and semi-structured interview techniques.
3. Practice of IT value assessment.
Plano de Trabalhos - Semestre 1
The main phases for the first semester are presented as follows:
1) Study of the state-of-the-art in the business value of IT (e.g. financial measures, Val IT governance framework, non-economic measures).
Start: September 2020
Duration: 2 months
2) Contacts with CIOs of selected organizations (3/4 interviews and/or field observation) to understand how IT budgets are managed and the challenges of measuring IT value in organizations.
Start: September 2020
Duration: 2 months
3) Propose a draft framework for synergistic (direct and indirect) IT value assessment to test in the second semester.
Start: November 2020
Duration: 1 month
Results of the 1st semester:
• Literature review
• Preliminary interviews with CIOs
• Intermediate report
Plano de Trabalhos - Semestre 2
The main phases for the second semester are presented as follows (may overlap):
4) Implement the synergistic IT value assessment framework in a real scenario. One of the interviewed organizations will be selected to measure the business value of their IT investments (case study) and evaluate the results.
Start: January 2021
Duration: 4 months
5) Develop a supporting tool (prototype) for synergistic IT value assessment.
Start: February 2021
Duration: 3 months
6) Writing of the thesis and a scientific paper.
Start: May 2021
Duration: 2 months
Results of the 2nd semester:
• Final report
Condições
The student will be integrated in the Information Systems Group (ISG) of CISUC, Department of Informatics Engineering. A workplace and the required resources will be provided.
Orientador
João Barata
barata@dei.uc.pt 📩