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Figure 2. ITIL value estimation process
ITIL v3 topics, and in order to assess the value
of ITIL implementations these benefits have to
be measured, but without forgetting that other
variables influence the business value of the
investment, for example: current maturity level
of each ITIL process and dependencies between
ITIL processes as well.
In conclusion, the two topics studied in this
section do not constitute a satisfactory solution for
the thesis' problem, because they are not prepared
to make an accurate estimation of the value of
ITIL implementations, as ITIL implementations
involve multiple complex variables specific to
ITIL which must be regarded. Nonetheless, these
two approaches do provide essential insight and
background for the conception of the estimation
process that is described in the following section.
and determine the NPV (Silvius, 2008). Subse-
quently, an additional sensitivity analysis should
be included as the previous variables are not de-
terministic and, therefore, are subjected to risks
and uncertainty (Stæhr, 2006).
In this research work, these steps are used with
an exception. Instead of only determining the NPV,
the calculation of the ROI, PBP and IRR is also
included in the cost benefit analysis because they
can be easily interpreted and are common financial
metrics used by managers. On the other hand, the
EVA is not included in the estimation process as
it takes the “net operating profits after taxes” as
input, which is a difficult variable to assess in the
context of this research work. Also, the sensitivity
analysis is performed over the ROI instead of the
NPV because managers tend to value more this
financial metric.
proposed estiMAtion process
estimation process description
After making a bibliographic research about
general and IT-specific investment evaluation
methodologies, the next logical step is to propose
a solution.
In order to perform a cost benefit analysis,
three actions should be included in the estimation
process: determine the tangible and intangible
benefits in addition to the project's costs, which
embody the tangibility return of an investment,
The estimation process is represented by figure
2 and the following points explain each activity
and sub-process in more detail:
•
Choose the processes: the start event leads
to the first activity of the process which is
performed by the consultant. In this activ-
ity, the consultant determines which ITIL
processes will be implemented. If a maturi-
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