Quantifying forecast quality of IT business value

Quantifying forecast quality of IT business value

This article discusses how to quantify the forecasting quality of IT business value. We address a common economic indicator often used to determine the business value of project proposals, the Net Present Value (NPV). To quantify the forecasting quality of IT business value, we develop a generalized method that is able to account for asymptotic cases and negative valued entities. We assess the ...

Quantifying IT forecast quality

In this paper, we showed how to quantify the quality of IT forecasts based on Boehm’s cone of uncertainty and DeMarco’s Estimating Quality Factor. With these, we support decision making by providing critical information on IT forecasting quality to IT governors. We illustrated that plotting forecast to actual ratios against a predefined referential conical shape reveals potential biases, for in...

Quantifying the value of IT-investments

We describe a method to quantify the value of investments in software systems. For that, we adopted the classical risk-adjusted discounted cash flow model and geared it towards the field of information technology. This resulted in a scenariobased approach incorporating two IT-specific risks that can substantially influence IT-appraisals. They are requirements creep and time compression. To acco...

Business and it executives' perceptions on business and it alignment and the business value of IT

This paper presents first results of a study in which the perceptions of business and IT executives are compared regarding the maturity level of business and IT alignment and the business value of IT. The alignment of business and IT is investigated as alignment processes and structures. The business value of IT is examined with a multidimensional framework, which includes both the realized bus...

IT Forecast Quality in Measure and Number