VALUING INFORMATION

SYSTEMS
BY DDAMULIRA CHARLES
WHY ITS HARD TO VALUE AN INFORMATION
SYSTEM
Valuing information systems is a very slippery concept as information
does not usually have universal value .its value is related to who values
it and what for. any assessment of the value of information is therefore
related to the decision making supported by such information.
ANOLOGY
• There exists two people stuck in the Sahara desert one having access
to enough water and the other having depleted his water reserves.
When information about water is given to both of them the one
having access to enough water finds less value in that information
and is willing to pay 0 or close to 0 for that information .On the other
the person with depleted water supplies finds the information about
water very valuable and is willing to pay more for it .In case the
information about the water arrives late i.e. When he is dead they no
longer need the information so they pay zero.
HOW TO VALUE AN INFORMATION SYSTEM
• Information systems (IS) are the backbone of any organization that
relies on data, communication, and technology to achieve its goals.
But how do you prove the value of IS to stakeholders, customers, and
partners? How do you measure the impact of IS on your
performance, efficiency, and innovation?
• emphasis on business processes rather than on programs and
employs both horizontal and vertical integration
Prove the value
• first prove the value of IS is to define your value proposition. This is a clear
and concise statement that explains how your IS solves a problem, meets a
need, or creates a benefit for your target audience. Your value proposition
should answer three questions:
• What is your IS offering?
• Who is your IS serving?
• Why is your IS different or better than others?
• A good value proposition will help you communicate the purpose, scope,
and relevance of your IS to your stakeholders.
•
What are the key performance indicators
• The next step to prove the value of IS is to identify your key performance indicators . These are
the metrics that you use to evaluate the success and progress of your IS in relation to your goals
and objectives. Your KPIs should be specific, measurable, achievable, relevant, and time-bound .
Some examples of Key Performance indicators for IS are:
1. customer satisfaction
2. user adoption
3. system availability
4. data quality
5. cost savings
6. revenue generation
7. process improvement
• Key Performance Indicators should reflect the value proposition of your IS and align with your
strategic priorities.
Collect and analyze your data
• One should use reliable and valid sources and methods to collect your
data, such as surveys, interviews, observations, tests, experiments,
logs, reports, and dashboards. One should also use appropriate tools
and techniques to analyze your data, such as descriptive statistics,
trend analysis, regression analysis, and visualization. You should aim
to produce clear and meaningful insights that demonstrate the value
of your IS in terms of outcomes, impacts, and benefits.
Show case your results
• prove the value of IS is to communicate and showcase your results.
This is the process of presenting and sharing your data and insights
with your stakeholders, customers, and partners in a persuasive and
engaging way. You should use different formats and channels to
communicate and showcase your results if you sell them your self
such as reports, presentations, infographics, videos, podcasts, blogs,
newsletters, and social media.