Net Present Value Analysis

Published Date: 02 Nov 2017

Task-1

COBIT is the only basis for business management and IT management. This evolutionary version incorporates the latest ideas in management practices and management, and provides globally accepted principles, practices, analytical tools and models to help build confidence and value of information systems. COBIT 5 builds and extends COBIT 4.1 by integrating other major frameworks, standards and resources, including ISACA's Val IT and risk, Information Technology Infrastructure Library (ITIL ®) and standards of the International Organization for Standardization (ISO).

COBIT 5 is based on five key philosophies for governance and management of enterprise IT:

Philosophy 1: Meeting Stakeholder Needs

Philosophy 2: Covering the Enterprise End-to- End

Philosophy 3: Applying alone, Integrated Framework

Philosophy 4: Enabling a Holistic method

Philosophy 5: Separating Governance From Management

The COBIT 5 framework describes seven categories of enablers:

Processes state an organized set of practices and activities to achieve certain objectives and produce a set of outputs in support of achieving overall IT-related goals.

Organizational structures are the key decision-making entities in an enterprise.

Information is required for keeping the organization running and well governed, but at the operational level, information is very often the key product of the enterprise itself.

Services, infrastructure and applications include the infrastructure, technology and applications that provide the enterprise with information technology processing and services.

Philosophy, policies and frameworks are the vehicle to translate the desired behavior into practical guidance for daily management.

People, skills and competencies are required for successful completion of all activities, and for making correct decisions and taking corrective actions.

Culture, ethics and behavior of individuals and of the enterprise are very often underestimated as a success factor in governance and management activities.

A new CEO has taken over the running of the company. He has experiences with COBIT framework. So, he can use COBIT to help improve the situation in the scenario’s organization. It helps to maintain high-quality information to support business decisions and IT-related risk at an acceptable level. There can achieve strategic goals and realize business benefits through the effective and innovative use of IT and operational excellence through reliable, efficient application of technology. There can reduce the cost of IT services and technology by using COBIT which supports compliance with relevant laws, regulations, contractual agreements and policies. The framework addresses both business and IT functional areas across an enterprise and considers the IT-related interests of internal and external stakeholders. In the past, the software house has a reputation for delivering over cost, over time and failing to meet the use or client and expectations. By using COBIT, this software house can not only get accountability, reliability but also have own disciplines.

Task-2

The following tools and techniques which would help select the software projects that support the organizations strategic priorities.

SWOT

Boston Consulting Group Matrix (BCG)

Porter’s Five Forces

Net Present Value Analysis (NPV)

Return on Investment (ROI)

Balanced Scorecard

Weighted Scoring Model

SWOT

SWOT-analysis is a useful method for understanding their strengths and weaknesses, and to identify both opportunities and threats it faces suggested. Used in a business context, a SWOT analysis helps to cut a stable niche in the market. Used in personal context, it helps you develop your career in a way that takes the best advantage of your talents, skills and abilities.

Boston Consulting Group Matrix (BCG)

BCG Matrix (Growth-Share Matrix) was established in late 1960 and the founder of the Boston Consulting Group, Bruce Henderson, as a tool to help their clients to the efficient allocation of resources among the various business units. Since then it has been used as a tool for planning and portfolio analysis for marketing, brand management and strategy development.

Porter’s Five Forces

Porter's five forces model is a common tool that companies can use to analyze the external environment, and I'll see how they apply to a company that is growing, that is Apple. The first of these forces is the degree of competition Porter, based on the number of participants that have comparable dimensions.

Net Present Value Analysis (NPV)

The use of NPV analysis is very broad. They include assessment and analysis of complex risk-based products, but also include the evaluation of the shadow of corporate operations. In recent applications use internal information not known to the market should increase understanding of the quality control assessment of the stock market, and can help in the management and planning of the date of acquisition and divestment decisions.

Return on Investment (ROI)

This tool is designed to calculate the potential savings a company can be done by implementing telework programs. Although aimed at medium and large companies, to any person or company can be used to model the potential impact of remote work in a company or organizatsii.ROI tool is free and easy to use. By providing information about your company or organization will model the potential return on investment (ROI) for your organization telecommuting.

Balanced Scorecard

The Balanced Scorecard (BSC) is a performance management tool strategy - semi-standard structured report, supported by the design methods and automation tools that can be used by managers to monitor the implementation of the measures , employees, under the control and monitoring of the consequences of these actions.

Weighted Scoring Model

Weighted scores is a way to put a semblance of objectivity in a subjective process. With the help of a coherent set of criteria, weighted by importance or priority criteria for organizing, comparing "like products" completed. If numerical values ​​can be assigned to the priority criteria and the ability of the product to meet a specific criterion is "balanced" can be obtained. Summing the weighted values​​, the product more closely meet the criteria can be determined.

In this task, I have to give my assumption why I select technique in terms of how they are appropriate for this given scenario. I have selected SWOT analysis for software industry. SWOT analysis can be applied to the organization, department, team or individual. Moreover, the analysis can support a number of project objectives. This approach leads indicating the purpose and brainstorming to identify internal and external factors that are favorable and unfavorable to achieving the author. This requires quantitative and qualitative information from various sources can be combined. SWOT plays an important role in the development of strategies and options. This is a powerful tool, but it is a large subjective element. It is best used as a guide rather than a prescription. Successful companies rely on their strengths, correct its weaknesses and protect against external threats and internal weaknesses. They monitor your overall business environment and to recognize and seize new opportunities faster than their competitors.

Task -3

In this assignment, I have undertaken as a project manager. The software development team addresses to outsource much of the IT function. But, I have to reduce staff for this to be cost effective. These are staff I have worked with for many years and I am friendly with them and their families outside work . So, I reduce number of staff by using Kallman and Grillo's Ethical Framework. The use of this ethical framework can identify facts and stakeholder to understand situation of organization. Moreover, this can analyse alternative ethical solution

and make decision. So, I can decide how to act and justify decision. The following are four-step process for ethical analysis and decision.

Step 1: Understanding the situation

In this step, this situation is that the reducing of existing workforce do not match with ethical law. Moreover, they and their families are my friendly people so I don't undertake this fire to staff.

Step 2: Isolating the major ethical dilemma

By the scenario, the major ethical dilemma are:

1. Without fire employee, but redundant their salary just a little

2. By examining to employee

Step 3: Analyzing the ethicality of both alternatives in Step 2

The first alternative from step 2 is the best ethical problem solving method. But this needs to wish from employee. However, this alternative is no need to unfriend with them and their families.

The second alternative from step 2 is also ethical problem solving method. This method can increase expense because of examination. If anyone of employee is fail, he or she can be jobless.

Step 4: Making a decision and planning the implementation

So, I will choose the first alternative. Firstly, I will give notice to do meeting and then I say my problem solving alternative. When I get acquiescence from all employees, I will reduce their salary just a little.