GVM: A Framework for Estimating the Business Value of Geospatial Technology within Information Syste

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GVM A Framework for Estimating the Business
Value of Geospatial Technology within Information
Systems

• Cambridge Mapping Conference
• 22 July 2003

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Objective

• Develop a practical framework for identifying and
  measuring the value of geospatial technology
  within enterprise information systems.

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Problem

• Today, technology decisions and program support
  are increasingly based on direct, measurable
  business value of technology.

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Problem

• IT enables business processes rather than
  producing direct business results.
• ROI measures must accurately show the effect of
  IT on business processes.

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Approach

• Develop a framework that will
• Identify and quantify geospatial technologys
  direct contribution to performance metrics.
• Produce accurate and continuous ROI data as part
  of corporate management processes.

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GVM Flow
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Step 0 Adapt GVM framework to Existing IT Design
and Management Methods

• GVM must supplement existing design and
  management methods within the organization.
• GVM is easy to misuse if treated as stand-alone
  method.
• GVM is best implemented as an iterative and
  participative process.

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Step 1 Identify Business Process and People
Involved

• E.g. Activate telephone service

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Whos Involved?
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Step 2 Process Diagram
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Step 3Set Performance Metrics
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Performance Metrics

• Financial
• Productivity
• Customer Value
• E.g. Average time to activate account, customer
  churn rate, cost of activation process

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Step 4 Identify Geospatial Functionality/Data
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Step 5 Identify Additional Uses (optional)
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Step 6 Determine Geospatial Specifications

• Data Accuracy, resolution, immediacy, coverage,
  
• Functions Inputs, storage, edits, queries,
  topology, outputs,

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Identify Geospatial Performance Contribution
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Assess Alternatives
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Step 8 Design and Implement

• Use geospatial specifications as input to design
• Data modeling
• Data architecture
• System specification and selection
• Use geospatial specifications in management
  parameters
• Balanced Scorecard
• Portfolio Management
• Clients corporate management process

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Step 9 Measure Performance

• Measure baseline performance.
• Measure performance after new information system
  is implemented on on-going basis.
• See ROI Worksheet.

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Step 10 Adjust/ Act
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Issues and Constraints

• GVM is a prototype
• Metrics v. causation
• Easy to overestimate value
• GVM does not capture intangible value

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Conclusions

• The business value of geospatial technology can
  be identified and assessed.
• Measurement requires that the role of geospatial
  technology be considered throughout the design
  and implementation of business processes and the
  information systems that support them.

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