A third way to assess the investment is by using the Information
Economics method. This method not only takes quantitative criteria
such as return on investment into account, but also qualitative cri-
teria such as the strategic need of the investment and the risks involved
in not making the investment. In Exhibit 5.11, an IE assessment chart
has been filled in for the business case of WWW-TeleBel.
97
Strategic Dialogue
NPV Component
2005
Investment
-280
Annual costs
-360
Annual benefits
847
Total NPV
207
EXHIBIT 5.10
Net present value of WWW-TeleBel
(U.S.$ thousands)
Technology
Operational Domain
Domain
Assess-
ment
B1
B2
B3
B4
B5
B6
T1
T2
T3
T4
factor
ROI SM
CA
MI
CR
OR
SA
DU
TU
IR
Weight
factor
5
5
3
1
4
1
1
5
2
2
Influence
+/
+
+
+
+
+
+
Plus Minus
Projects
Evaluation
(+)
() Total
Score
Score
Score
P1
4
5
4
2
5
3
5
3
5
1
84
30
54
P2
EXHIBIT 5.11
IE Assessment Chart for WWW-TeleBel
c05_wagter.qxd 12/10/04 12:23 PM Page 97
Summary :
97 Strategic Dialogue NPV Component 2005 Investment -280 Annual costs -360 Annual benefits 847 Total NPV 207 EXHIBIT 5.10 Net present value of WWW-TeleBel (U.S.$ thousands) Technology Operational Domain Domain Assess- ment B1 B2 B3 B4 B5 B6 T1 T2 T3 T4 factor ROI SM CA MI CR OR SA DU TU IR Weight factor 5 5 3 1 4 1 1 5 2 2 Influence +/ + + + + + + Plus Minus Projects Evaluation (+) () Total Score Score Score P1 4 5 4 2 5 3 5 3 5 1 84 30 54 P2 EXHIBIT 5.11 IE Assessment Chart for WWW-TeleBel c05_wagter.qxd 12/10/04 12:23 PM Page 97
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