Business Value of Information Technology Service Quality Based on Probabilistic Business-Driven Model

The business value of information technology (IT) services is often difficult to assess, especially from the point of view of a non-IT manager. This condition could severely impact organizational IT strategic decisions. Various approaches have been proposed to quantify the business value, but some are trapped in technical complexity while others misguide managers into directly and subjectively judging some technical entities outside their domain of expertise. This paper describes a method on how to properly capture both perspectives based on a probabilistic business-driven model. The proposed model presents a procedure to calculate the business value of IT services. The model also covers IT security services and their business value as an important aspect of IT services that is not covered in previously published researches. The impact of changes in the quality of IT services on business value will also be discussed. A simulation and a case illustration are provided to show the possible application of the proposed model for a simple business process in an enterprise.