Value Assessment

Value Assessment

Quantitative 

When implementing IBM Watson Analytics, there is a monthly cost, which may vary depending on the amount of data used.  We recommend using the standard amount of data and then adapting it later, as needed.  The company could increase their data, if needed (IBM, 2015).  The costs for the standard amount of data is a recurring $8,800 monthly fee (IBM, 2015).  Below is a table that outlines the costs associated with implementing IBM Watson Analytics.  This chart is broken down in months, up to two years.  An additional cost that can be seen below is our recommend fixed salary bonus, which was planned to offset the burden of the additional tasks this project would place on the primary point person (Computer World, 2015).  

The above chart displays the costs associated with implementing IBM Watson Analytics and a $4,000 employee bonus for the point-person on this project.

Companies who implemented IBM Watson Analytics experienced an excellent ROI.  An increase in client retention is the main factor behind an average 3.8 million dollar net gain, thanks to Watson (IBM, 2014).    Based on another company’s report of an ROI of 383% from implementing IBM Watson in only four months, we anticipate IVK’s ROI to be 410% in four months, 438% in eight months, 447% in one year, and 458% in two years.  These figures that were approximated using IVK's sales, current growth, and modeling after companies who also use IBM Watson, can be seen below.

ROI for IVK, based on similar companies who experienced ROI from their IBM Watson Analytics investment.  IVK's sales and current growth were both used to calculate an estimated ROI.

Qualitative

IBM Watson is very user-friendly, which lends itself well to implementation in an already busy workforce (IBM, 2015).  Since IBM Watson Analytics is easy to use, the risk of reported dissatisfaction is lower for employees.  Our proposed fixed cost of a $4,000 bonus would also help address this concern (Collett, 2015).  Employees previously reported their number one workplace woe is an increase in IT workload (Collett, 2015).  An additional report found  a salary increase is likely to increase job satisfaction (Collett, 2015).   We see the salary bonus as an excellent opportunity to implement a bonus for the main point-person who would oversee the IBM Watson Analytics implementation and decrease their dissatisfaction with the extra responsibility (Collett, 2015).

When introducing a new technology, such as IBM Watson Analytics to an established business, the project leader should receive a bonus upon successful completion of the implementation project to assist in encouraging the individual to stay with the company, despite an increase in responsibilities.   A recent IT salary survey found the number one factor that motivates employees to stay with a company is a salary increase; whereas, introducing more responsibility to an employee is a factor that can cause employees to leave (Computer World, 2015 April).  Additionally, the top factor that negatively affects working conditions is an increased IT workload, so establishing leadership and appropriate compensation is important (Computer World, 2015 April).  A new, understaffed project is the second factor that negatively affects working conditions (Computer World, 2015 April).   IBM Watson is an excellent addition, because IBM will provide support for employees, allowing for the transition to be as easy as possible (IBM, 2015).  

IBM Watson Analytics assisted other companies in increasing customer retention rates (IBM, 2014).  IBM Watson Analytics was able to do this by understanding the reasons behind client departure (IBM, 2014).  This is an excellent advantage of implementing IBM Watson, as this point alone is an excellent asset to have within a company.  

IBM Watson Analytics' user friendly interface is an important aspect when considering its value.  Having a new program that is user friendly means employees will likely easily adjust to the implementation.  User friendly programs are important given the purpose of technology is to make the workload easier, not harder for employees.  A connection can be seen between an easier workload and increased work production.  By introducing IBM Watson Analytics, employees will enjoy Watson support, Watson's ability to generate graphs and other information in user friendly ways, and the cutting edge technology associated with IBM, that is continually updated.

IBM Watson's core technology is "machine thinking." Watson has the ability to think like a human, yet with machine capabilities.  This makes Watson IVK's super employee.  Watson is able to think of more possibilities for data than actual employees, create methods to displays this data, all while always being able to work with no "call offs" or breaks needed. 

Discussion of the Value

As demonstrated in our projected ROI, IBM Watson Analytics is an excellent option.  The cost is particularly low, because IVK is an already established company, with computers, employees, rent, and utilities already being budgeted for and paid, introducing a new analytics program is an excellent idea (Austin, 2009).  This makes Watson an affordable addition to any company, but even more so for an already established company (IBM, 2014).  IBM’s easy to use interface is helpful, as it would decrease employee frustration and confusion (IBM, 2014).  Additionally, IBM’s insight into prior client departure is especially relevant in the business world, where maintaining client relationships ensures future business relationships (IBM, 2014).  

References

Austin, Robert D., Nolan, Richard, L., & O'Donnell, Shannon (2009).  Adventures of an IT Leader.
        Kindle Version.  Retrieved from Amazon.com

Collett, Stacy. 2015, April 27. Companies that desperately need hot IT skills are ratcheting up        salaries and bonus to lure talented tech workers.  Here's how to grab your fair share.  Retrieved
        from http://computerworld.com/article/2909514/salarysurvey2015/it-salaries-2015-cash-
        is-back.html

IBM. 2015. IBM Watson Analytics. Retrieved from http://www.ibm.com/marketplace/cloud/watson-
        analytics/us/en-us#htMainContainer

IBM. 2015. Watson Analytics: IBM Watson Analytics. “Support.” Retrieved from 
         https://community.watsonanalytics.com/support/ 

IBM. 2014, January 21.  Better business outcomes with IBM Big Data & Analytics.  Retrieved from
        www.ibmbigdatahub.com/sites/default/files/whitepapers_reports_file     
        /59898_Better%20Business%20Outcomes_White%20Paper_Final_NIW03048-
        USEN-00_Final_Jan21_14.pdf