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Chriatina

If I were on the team for value analysis of purchasing a new computer application, some questions I would raise include how often would the application be utilized/needed, long-term cost and savings, how many people are required to use it, the cost of implementation, delivery, and setup, the cost of user training, and what alternative systems exist for a price and function comparison. By considering all these aspects, you can develop an idea of the necessity of the application and what it would take to pay for and use it over time. Careful consideration ensures that you aren’t paying for an application that isn’t necessary or too expensive to outweigh the benefits.

 

Lindsey reply to Christina

You have brought up an excellent point here about cost of user training. A way of measuring who needs to be trained to utilize this new computer application is by all employees of the organization taking a simple survey though email to see if it would apply to their job role and analyzing those results. Once the results are collected, the cost could be determined based on how many employees would need to be trained and for how long.

 

 

 

Rupinder

The initial stage in evaluating a new computer application to buy for the company would be data collection, which would comprise gathering organizational/team requirements and product usability requirements. The following step will be budget planning, which will include cost estimates for buying and maintaining the product. The next step will be to negotiate with third-party vendors for product evaluation and development. Implementation and testing are the final steps in ensuring a smooth and successful product launch. Testing will be done with a clear understanding of what concerns have been found and whether all requirements have been met. Process enhancement, revenue growth, productivity gains, and cost savings from hardware and software would be the tangible benefits. Improved user experience, higher levels of customer satisfaction, and brand equity would be the intangible benefits. The cost of providing computers to employees, employee salaries, and lodging for a training course are all tangible costs. The time it takes employees to understand the system and whether or not it is convenient for staff to use are intangible costs.

 

 

 

Katherine reply to Rupinder

Rupinder,

I appreciated how you thought to bring up negotiating with third party vendors to increase value from a new application purpose. Often, the price of an application is not set in stone and there are things that can bring the cost down. Getting a new application at a reduced price can result in a better value.

 

 

 

Sheryl

To evaluate a potential new computer application for an organization identifying the need and involving the end users provides a solid basis to begin analysis. Utilizing data that identifies key aspects of value will drive decision making for administration and finance. Data that needs to be analyzed includes costs associated with purchasing and maintaining the system, how much value will be added to the organization by this purchase, and how does the cost compare to the benefit. Cost usually sets the tone, however, it the system can bring value to an organization then it often is seen as a cost saving measure. Input of the actual team that will be utilizing the system is a key factor in assessing the new system. A system selected by the finance department that does not meet the needs of working department simply is a waste of money. Staff that is tasked with providing input to the system also should envision the use and workflow of the product. Will it drastically change the current workflow? Will training ensure a successful transition? Complete and in-depth scrutiny by the value analysis team must be explored, however, the final decision is often the cost to value benefit of the new system.

 

Alexandra reply to Sheryl

Hi Sheryl,

It is a very good point when you specifically mention that the value analysis for the computer application depend a lot on different types of data as well as the usability and cost. I agree with you that very often the money value for a product determines whether it will be used by by a certain company or not.

 

 

 

 

Nihal

If I was on a value analysis team evaluating a new computer application, I would have a list of potential benefits and costs I would want to evaluate. The first thing I would look into is what the organization needs, and how this application works towards addressing that. It may not satisfy ALL the needs, but if it eases the load significantly, that would be evaluated in its favor. In addition to evaluating how it meets our needs, I would look into other benefits such as ease of use, ease of implementation, user satisfaction (based on information from other hospitals potentially) and patient experience if applicable. I would also like to look into the providers’ or organization’s reasons for pursuing this product in the first place. After all, it is the staff that will be using the application. In terms of costs, I would look into implementation costs, the costs of time spent in set up or while use, efficiency etc. These would ensure that we are utilizing an application that has been streamlined for the tasks it is to complete.

Tien reply to Nihal

Hi Nihal,

Great post. I totally agree with your ideas. It seems like we have similar thoughts. I have learned a lot from you. I had never thought of the ease of use, ease of implementation, or user satisfaction before reading your post. These factors show that the company is concerned with providing excellent customer service, which increases revenue and reputation.