Business solution evaluation is the process of evaluating potential and existing solutions to meet a specific business need. It encompasses non-IT and IT components, such as rules, processes, and organizational structures. The term solution evaluation originates from the Business Analysis Body of Knowledge Guide version 3 of the International Institute of Business Analysis in Toronto. The requirements engineering literature also contains some references to business solution evaluation. The following are some common criteria for business solution evaluation.
The first criterion for evaluating business solutions is to identify the value that each of the proposed solutions will provide to the organization. Then, the valuation module 36 can use these values to create a value model 60. The value model 60 also includes aggregate information about the combined value of different types of business solutions and their impact on other business concerns. The valuation model 60 can also be used to create value models based on the impact of multiple modifications of a business solution.
A business value assessment model is a valuable tool for evaluating new solutions and comparing vendors. The process is applicable to all types of solutions, including software. The purpose of business solution evaluation is to enable meaningful mediation in the early stages of a case. The value of each proposed solution is quantified and the business value can be derived. This model can be used to determine whether the proposed solution will meet the needs of the organization and to determine whether the benefits will outweigh the costs.
The invention relates to a business method for performing process steps. The monitoring system 40 can compare the predicted business value 54 to actual business values, and determine if the predictions are accurate. Then the valuation system 36 can adjust its value model 60 based on the measured actual business value. Furthermore, the evaluation system 36 can adjust values of one or more business concerns. Furthermore, the method can also be used to measure the relationship between two business concerns.
The valuation module 36 generates an illustrative display 80 that shows the results of the business transformation evaluation. The display 80 consists of a plurality of panes 82A-C that correspond to business solution information, business concern information, and value metric information. The display 80 can comprise more than three panes or can include only two. Additionally, the display includes linking information. This helps users evaluate the impact of the transformation on the business.
In addition to determining the value of a business solution, the system may include a time delay factor. The time delay factor enables the user to determine cash flow over multiple periods. Likewise, the initial investment in a business solution may be consumed in period zero, and the benefit increases slowly over the subsequent periods. The system of the present invention can also rule out some solutions based on business information, and pass the remaining ones to a financial program for further analysis.