Utilizing GQM+Strategies for Business Value Analysis An Approach for Evaluating Business Goals Vladimir Mandic´ Victor Basili Lasse Harjumaa Department of Information Fraunhofer Center for Department of Information Processing Science, Experimental Software Processing Science, University of Oulu Engineering - Maryland University of Oulu Finland USA Finland
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[email protected] lasse.harjumaa@oulu.fi Markku Oivo Jouni Markkula Department of Information Department of Information Processing Science, Processing Science, University of Oulu University of Oulu Finland Finland markku.oivo@oulu.fi jouni.markkula@oulu.fi ABSTRACT to define it. The general understanding is that business value is Business value analysis (BVA) quantifies the factors that provide a concept which extends the traditional bookkeeping-like defini- value and cost to an organization. It aims at capturing value, con- tion of the value by including different aspects of the business as trolling risks, and capitalizing on opportunities. GQM+Strategies well. Those different aspects of business (e.g., employees, part- is an approach designed to aid in the definition and alignment of ner networks, ability to adopt new processes rapidly, etc.) form an business goals, strategies, and an integrated measurement program endless list that is under continuous amendment. A rich financial at all levels in the organization. In this paper we describe how apparatus for evaluating business investments (e.g., return on in- to perform business value analysis (BVA) using the GQM+Strate- vestment (ROI), net present value (NPV), portfolio management, gies approach. The integration of these two approaches provides a etc.) is powerless if we are not able to define inputs (components coupling of cost-benefit and risk analysis (value goals) with oper- of the business value).