Extending the Method of Bedell for Enterprise Architecture Valuation

Abstract

If and where IT investments should be made can be determined with the help of IT portfolio valuation instruments. An interesting approach is Bedell's method. However, this method originates from a time where enterprises we restructured according to the classical silo architecture. Nowadays the importance of IT has increased, and IT systems and services are more and more interwoven with the business. Enterprise Architecture is a model-based approach that takes into consideration how companies are structured today and how they apply IT. In order to use Enterprise Architecture models in conjunction with Bedell's method the method needs to be extended. This paper presents an updated version of Bedell's method that exploits Enterprise Architecture models, in particular the information they contain about the alignment of IT support to the business. In addition, the paper illustrates the application of the method using an example.