Another possible way is to distinguish the initiative expected from the priority to the business. The payoff has to provide a value that drives the success of the business. There are numerous systems with the capability to generate value, but to make a decision on the most significant measure is essential for alignment with the policies of the business. Metrics that measure the effectiveness of Information System and Information Technology In the business industry, there is always incorporation of numbers, which affirms that the information technology has to be part of the equation. Research confirms that the metrics applied to compute the value of IT resources with the investments in an organization alter as CIOs exceed classic return-on-investment and total-cost-of-ownership formulas(Zee, 2009). The reason why these CIOs exceeds the two imperative formulas is to prioritize investments within their organizations. A good number of Information technology and business managers seem to have discovered novel metrics that they can apply to measure the effectiveness of both IS and IT in an organization. There were claims that to conduct effective measures, the managers gut their entire metrics look through the placement of IP-based system services supplier to the side. There are some organizations such as the Hewlett Packard that opt to carry out a cost-benefit analysis that aims every project to determine the returns provided. In this case, the returns refer to projected operating earnings (Zee,
2009). These projected operating earnings according to Hewlett Packard tend to be either the investments dropped to the baseline or advanced revenue opportunities. Some additional metrics that are relevant to measure the effectiveness of IT include the figure of lively projects, duration spent by organization on innovation against the sustainability of technology, and cost-benefit examination on completing projects. Methods used to measure the economic value of an Information Technology department to a company Economic value is an important aspect in the definition and measurement of value within an organization. In cases where an organization plans to make decisions that have an influence on the economic choices such as trade-offs in the distribution of resources, economic value is vital. To take measures on economic value depends on what an individual’s preference (Zee, 2009). In an organization, the economic value measurements are determinable through maximum amount related to other things that the organization is willing to surrender in order to acquire a particular item. In an organization’s information technology department, economic value depends on the state at which the organization wants to establish its department. It is definite that there must be a height of willingness to acquire a certain product applicable to the department in order to determine the economic value. Models for assessing the Information System value put in place by the Information Technology department From the present day state of organization with Information technology departments, it is evident that an accurate assessment of the latent value with the influence of an information system speculation has turned out to be an essential. The overall cost of the information system increases gradually due to the commoditization of hardware and software.