Application Value Assessment Tool

8/3/2019 Application Value Assessment Tool

1/6


2/6

Which business process does this application support?

Metrics Definition

Sc

(0-1, Low

See Scoring

for mo

1. Short-Term Objectives Alignment Alignment with business goals and objectives

2. Principles/Long-Term Strategy AlignmentAlignment with business principles and long-termstrategic goals

3. End-User Value Perception Support of end-user operational needs

1. Likelihood of Impact > 30%, > 10% to 30%, > 1% to 10%, etc.2. Magnitude of Impact < $250,000, $250,000 to $1,000,000, etc.

1. Business Sponsorship Engagement of business sponsor

2. Organizational ReadinessCombination of business team engagement andscale of business change

3. Solution Maturity Stability of solution

4. Technical ComplexityNumber of technologies, including emergingtechnologies

Benefits Realization Score

Aggregate Score

II. Business Impact of Not Investing

III. Benefits Realization Probability

APPLICATION VALUE ASSESSMENT TOOL

I. Business Fit

Business Fit Score

Business Impact (Likelihood x Magnitude)


3/6

Metrics Definition Value Score

0 None

0.2 Weak

0.5 Moderate

1 Strong

0 None

0.2 Some

0.7 Most

1 All

0 Very Low

0.3 Low

0.8 Medium

1 High

1. Short-Term Objectives

Alignment

2. Principles/Long-Term

Strategy Alignment

3. End-User Value

Perception

How well does the investment align to

the business goals and objectives?

How well does the investment align

with business principles and long-term

strategic goals?

How effectively does the solution

support the operational needs of the

end users?

Aligned with none of the

Does not align with bus

Minimal alignment to ob

Moderate alignment to o

without the investment,

Integral to meeting obje

Aligned with most of the

Aligned with all busines

Application Value Assessment Scoring Guidelines

I. Business Fit Scoring Guidelines

Aligned with some of th

Easy to use, provides e

Is required for core wor

Is an inconvenience to e

Significantly detracts fro


4/6

Value Scale

0.1 < 0.1% Chance

0.3 0.1%1% Chance

0.7 > 1%10% Chance

0.9 > 10%30% Chance

1 > 30% Chance

Scope of Business

DisruptionDefinition < $250 $250$1,000 > $1,000$10,000

Local

Impact is limited to a very small group

of individuals within or across

components.

0 0 0.1

Component

Impact reaches a majority of

individuals in a component (e.g., allfinancial analysts).

0 0.1 0.3

Corporate

Impact reaches a large portion of Lilly

employees and spans business

components.

0.1 0.2 0.5

External

Impact is visible to external

stakeholders including customers,

physicians, patients, payers,

government.

0.1 0.3 0.8

Size of Business Disruption ($000s)

II. Business Impact Assessment

2. Magnitude of Impact Scoring Guidelines

1. Likelihood of Impact Scoring Guidelines

If this investment is not made, what is the likelihood of business disruption without a

replacement? (Business disruption is defined as a delay or interruption of service).

Likelihood of Impact


5/6

Score Value

Weak 0

Moderate 0.5

Strong 1

Organizational Readiness Question Score

Weak

Moderate

Strong

Significant

Moderate

Little

Business EngagementHow engaged is the business area

(that will be) using this investment?

How much change in the business

area will be necessary to realize the

value of the investment?

Magnitude of Change

Sponsor fully engaged at the right level and with the proper

Business team mostly identified but incon

Business team identified and engaged; Dgoals for project or application service

Substantial and widespread changes in o

or processes needed to realize value

Some incremental changes in organizatio

processes needed; Could include signific

localized area

Limited change in organization, roles and

Sca

No sponsor identified or three or more sponsors

How Engaged Is the Sponsorship for This Investment?

Scale

Sponsor identified but not fully engaged or two sponsors

1. Business Sponsorship

2. Organizational Readiness Definitions

Business team not identified even though

Team members identified are not engage

III. Benefits Realization Assessment

O i ti l R di S i G id li


6/6

Organizational Readiness Significant Moderate Little

Weak 0 0 0.1

Moderate 0.2 0.5 0.7

Strong 0.7 0.9 1

Score

Unstable

Somewhat Unstable

Somewhat Stable

Very Stable

Number of Technologies1

3 or more 1 to 2 None

7 or more 0 0.3 0.5

4 to 6 0.4 0.6 0.8

1 to 3 0.5 0.9 1

1Includes core platforms, languages, integration tools, specialized hardware, and other technologies.

2Emer in technolo ies are those that are earl in their lifec cle from a technolo industr ers ective.

Number of Emerging Technologies2

Magnitude of Change

Minimal changes required, moderate maintenance effort, majority of problems are known manageable

issues

Solution is very stable, no major changes anticipated; requires minimal maintenance effort

Definition

3. Solution Maturity

4. Technical Complexity

Major stability issues causing regular investment to maintain software, known future problems with

significant effort needed to resolve

Moderate changes required, not at current version, known problems, some significant

Organizational Readiness Scoring Guidelines

Documents

Application Value Assessment Tool