Sample Business Value Dials
Business Value
- Business Challenge: Determining ROI for IT
- Closing the ROI Gap: IT Business Value
- Measuring ROI: Business Value Dials
- Sample Business Value Dials
- Business Challenge: Maximizing ROI for SAP
- Closing the ROI Gap: IT Business Value
- Case Study #1: Top 10 Pharmaceutical Company
- Case Study #2: Manufacturing Company
- Case Study #3: Global Food Processing Company
- Case Study #4: Global Life Sciences Company
Sample Business Value Dials
Value Dial |
Definition |
| Days of Inventory | Reduction in days of inventory lead to value in finished goods, work-in-process, or raw material inventories |
| (value of 1 day) x (days of inventory removed) x 15% (weighted average cost of capital) | |
| Headcount Productivity | Gains in headcount efficiencies or effectiveness. Headcount is expected to produce more through these gains due to the additional time efficiencies. |
| (number of employees affected) x (time) x (average burden rate) x (50%) | |
| System End-of-Life (EOL) | Removing unnecessary IT support and maintenance costs as a result of a new system upgrade or consolidation of multiple systems |
| Cost of maintaining legacy system |
Value Dials are financial measurements of business value that map to the bottom line of the company
CIO Insight Survey 2006
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