Method and apparatus for a value framework and return on investment model

• US 20050137950A1
• Filed: 12/17/2003
• Published: 06/23/2005
• Est. Priority Date: 12/17/2003
• Status: Abandoned Application

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Zysfain, Brian Mitchell, Scheld, Brian J., Palozzi, Gino Anthony, Young, Howard
• Application Number:
  US10/738,709
• Publication Number:
  US 20050137950A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 10/04 Forecasting or optimisation specially adapted for administrative or management purposes, e.g. linear programming or "cutting stock problem" market predictions or forecasting for commercial activities G06Q30/0202
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method and system for calculating the return-on-investments (ROI) for an enterprise architecture. The present invention discloses a unique set of metrics which provides improved accuracy for the economic and architecture for the construction of future systems. A preferred embodiment of the present invention focuses on developing process improvement assumptions associated with estimating the impact of the proposed capabilities. It includes the following components: an understanding of the client'"'"'s strategic drivers, an understanding of the key business process areas, an identification of the business capabilities that a solution can offer the client, an estimation of the business processes improvements, and an estimation of the financial impact the proposed solution will have on the client. The value framework and ROI model of the present invention incorporates a client'"'"'s strategic position and key processes before the benefits of a proposed solution or initiative can be estimated.

Claims

1. A method in a data processing system for developing a client value proposition, wherein the client value proposition provides a proposed solution enabling a client to achieve its business objectives, comprising:

performing a strategic assessment of the industry drivers to determine a client'"'"'s strategic intent;

identifying business process areas aligned to the client'"'"'s strategic intent;

determining required capabilities of the proposed solution;

estimating business processes improvements by linking proposed solutions to business benefits that the proposed solutions provide;

estimating a financial impact the proposed solution will have on the client; and

displaying the estimated business processes improvements and estimated financial impact on an output device.

2. The method of claim 1, wherein the strategic assessment includes generating an understanding of factors and trends that drive a client'"'"'s industry to determine the client'"'"'s strategic intent.

3. The method of claim 1, wherein the strategic assessment includes understanding how the client is positioned relative to its industry and peers.

4. The method of claim 1, wherein identifying business process areas includes understanding a client'"'"'s industry business architecture, determining existing processes where improvements would result in desired results, and identifying new processes that may facilitate achieving desired results.

5. The method of claim 4, wherein identifying business process areas includes documenting how the improved existing processes or new processes impact the various processes in a client'"'"'s industry.

6. The method of claim 5, wherein the documenting step includes documenting key performance metrics, industry/peer benchmark data, and source of the industry/peer benchmark data for each of the identified business process areas.

7. The method of claim 1, wherein determining the required capabilities of the proposed solution includes documenting the capabilities of the proposed solution.

8. The method of claim 1, wherein estimating the impact of process improvements includes identifying linkages between the proposed solution and the business process areas, prioritizing the identified linkages based on degree of impact and alignment to the client'"'"'s strategic intent, and estimating potential process improvements.

9. The method of claim 1, wherein estimating the financial impact of the proposed solution includes estimating a cost benefit, a net revenue benefit, a required investment, and a return on investment.

10. A data processing system for developing a client value proposition, wherein the client value proposition provides a proposed solution enabling a client to achieve its business objectives, comprising:

performing means for performing a strategic assessment of the industry drivers to determine a client'"'"'s strategic intent;

identifying means for identifying business process areas aligned to the client'"'"'s strategic intent;

determining means for determining required capabilities of the proposed solution;

first estimating means for estimating business processes improvements by linking proposed solutions to business benefits that the proposed solutions provide;

second estimating means for estimating a financial impact the proposed solution will have on the client; and

displaying means for displaying the estimated business processes improvements and estimated financial impact on an output device.

11. The data processing system of claim 10, wherein the strategic assessment includes generating an understanding of factors and trends that drive a client'"'"'s industry to determine the client'"'"'s strategic intent.

12. The data processing system of claim 10, wherein the strategic assessment includes understanding how the client is positioned relative to its industry and peers.

13. The data processing system of claim 10, wherein identifying business process areas includes understanding a client'"'"'s industry business architecture, determining existing processes where improvements would result in desired results, and identifying new processes that may facilitate achieving desired results.

14. The data processing system of claim 13, wherein identifying business process areas includes documenting how the improved existing processes or new processes impact the various processes in a client'"'"'s industry.

15. The data processing system of claim 14, wherein the documenting step includes documenting key performance metrics, industry/peer benchmark data, and source of the industry/peer benchmark data for each of the identified business process areas.

16. The data processing system of claim 10, wherein determining the required capabilities of the proposed solution includes documenting the capabilities of the proposed solution.

17. The data processing system of claim 10, wherein estimating the impact of process improvements includes identifying linkages between the proposed solution and the business process areas, prioritizing the identified linkages based on degree of impact and alignment to the client'"'"'s strategic intent, and estimating potential process improvements.

18. The data processing system of claim 10, wherein estimating the financial impact of the proposed solution includes estimating a cost benefit, a net revenue benefit, a required investment, and a return on investment.

19. A computer program product in a computer readable medium for developing a client value proposition, wherein the client value proposition provides a proposed solution enabling a client to achieve its business objectives, comprising:

first instructions for performing a strategic assessment of the industry drivers to determine a client'"'"'s strategic intent;

second instructions for identifying business process areas aligned to the client'"'"'s strategic intent;

third instructions for determining required capabilities of the proposed solution;

fourth instructions for estimating business processes improvements by linking proposed solutions to business benefits that the proposed solutions provide;

fifth instructions for estimating a financial impact the proposed solution will have on the client; and

sixth instructions for displaying the estimated business processes improvements and estimated financial impact on an output device.

20. The computer program product of claim 19, wherein the strategic assessment includes generating an understanding of factors and trends that drive a client'"'"'s industry to determine the client'"'"'s strategic intent.

21. The computer program product of claim 19, wherein the strategic assessment includes understanding how the client is positioned relative to its industry and peers.

22. The computer program product of claim 19, wherein identifying business process areas includes understanding a client'"'"'s industry business architecture, determining existing processes where improvements would result in desired results, and identifying new processes that may facilitate achieving desired results.

23. The computer program product of claim 22, wherein identifying business process areas includes documenting how the improved existing processes or new processes impact the various processes in a client'"'"'s industry.

24. The computer program product of claim 23, wherein the documenting step includes documenting key performance metrics, industry/peer benchmark data, and source of the industry/peer benchmark data for each of the identified business process areas.

25. The computer program product of claim 19, wherein determining the required capabilities of the proposed solution includes documenting the capabilities of the proposed solution.

26. The computer program product of claim 19, wherein estimating the impact of process improvements includes identifying linkages between the proposed solution and the business process areas, prioritizing the identified linkages based on degree of impact and alignment to the client'"'"'s strategic intent, and estimating potential process improvements.

27. The computer program product of claim 19, wherein estimating the financial impact of the proposed solution includes estimating a cost benefit, a net revenue benefit, a required investment, and a return on investment.