Business Value Index (BVI)

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Business Value Index (BVI) is a composite index of factors that impact the value of an IT investment. It evaluates IT investments along three vectors: IT business value (that is, impact on Intel’s business), impact on IT efficiency, and the financial attractiveness of an investment. All three factors use a predetermined set of defining criteria that includes customer need, business and technical risks, strategic fit, revenue potential, level of required investment, the innovation and learning generated, and other factors. Each factor’s criteria are weighted according to the ongoing Business Strategy and business environment—changes in business strategy could change how criteria are weighted for different factors. [1]

The predefined criteria include, but are not limited to:

  • Customer need
  • Business and technical risks
  • Strategic fit
  • Revenue potential
  • Level of required investment
  • Amount of innovation and learning generated

See Also

  1. Business Value Measurement: Techniques or methodologies used to quantify and assess the value generated by business activities, investments, or initiatives.
  2. Performance Metrics: Key performance indicators (KPIs) or metrics used to evaluate business operations or strategies' effectiveness, efficiency, and success.
  3. Return on Investment (ROI): A financial metric used to measure the profitability or return generated by investments relative to their cost.
  4. Balanced Scorecard: A strategic management framework used to measure and manage the performance of an organization across multiple dimensions, including financial, customer, internal processes, and learning and growth.
  5. Value Based Management (VBM): A management approach focused on maximizing shareholder value by aligning business strategies, decisions, and actions with the creation of long-term economic value.
  6. Economic Value Added (EVA): A financial performance metric that measures the value generated by a company more than its cost of capital.
  7. Customer Value Index (CVI): A metric or index used to measure the value delivered to customers by products, services, or experiences.
  8. Stakeholder Value Index (SVI): A metric or index used to measure the value delivered to stakeholders, including customers, employees, investors, and communities.
  9. Market Value Added (MVA): A financial metric that measures the difference between the market value of a company and the capital contributed by investors.
  10. Total Economic Impact (TEI): A framework used to assess the financial impact and return on investment of technology investments or business initiatives.