A Process for Estimating the Value of ITIL Implementations - Enterprise Information Systems Design, Implementation and Management: Organizational Applications - page 405

Figure 3. Benefits quantification sub-process

Costs Quantification Process Carlo simulation since it is mathemati-

cally correct if the chosen distributions
for the variables are correct. According to
the “central limit theorem”, since the ROI
results from the sum of several variables,
there are strong arguments for choosing a
normal distribution. The chance that the in-
vestment will compensate is calculated by
counting the number of scenarios in which
the user-defined breakeven line is reached.
This activity is comparable to the certainty
revenue which is one of the characteristics
of an investment (Silvius, 2008).

This sub-process, pictured in figure 4, requires
the consultant to define the discount rate and the
percentage of operating costs that come from the
investment over the years and the value of the
investment, so as to determine the project's costs.

iMpLeMentAtion

In order to realize the estimation process described
in the previous section, a prototype was built with
Microsoft Excel 2003 technology. Excel proved to
be effective as it allows the prototype to be fully
configurable, provides essential built-in functions
that confer implementation flexibility as well as
implementation speed, and allows powerful addIns
to be incorporated into the ITIL Value Estimator.

Benefits Quantification Process

This sub-process is constituted by four activities
as it is illustrated in figure 3. The first activity is
for the consultant to input the actual KPIs value
into the ITIL Value Estimator as well as the
forecast values considered to be more adequate
by the consultant. Finally, other data besides the
KPIs is inserted in the necessary fields and the
logic behind the benefits quantification has to be
checked by the consultant.

prototype's development process

The prototype's construction evolved at the same
time as the development of the estimation process
did, which was the result of several interactions

Figure 4. Cost quantification sub-process