PAMANTASAN NG LUNGSOD NG MARIKINA

City University of Marikina

College of Information Technology
COURSE CODE:

PCC205

COURSE TITLE:

Quantitative Methods for Information Technology

COURSE DESCRIPTION:
CREDITS

3 units

COURSE CONTENT OUTLINE

Introduction to Information Technology Investment Decision-Making Methodology

Introduction to Information Technology Investment Decision-Making Methodology

(Week 1)
o Types of Information Technology Investment Decision-Making Problems
o What are Information Technology Investment Decision-Making Methodologies?
o Limitations of Methodologies
o Why Study Information Technology Investment Decision-Making
Methodologies?
o Organizational Strategic Planning in IT Investment Decision-Making
Needs Analysis and Alternative IT Investment Strategies
(Week 2)
o What is Needs Analysis?
o Determining IT Processing Capacities and Specifications
o Alternative IT Investment Strategies
o What is IT Outsourcing?
o An IT Outsourcing Strategy
Measuring IT Investment Performance
(Week 3)
o The Economics of Information
Examples of Economic Theories of Information
o Why Measure IT Performance?
o Measures of IT Business Value
o Financial Performance Measures of IT
Business Performance Measures of IT
Strategic Performance Measures of IT
Costs of IT
Measures of IT Effectiveness Value
Measures of IT Efficiency Value

Financial Information Technology Investments Methods

Basic Financial Models

(Week 4)
o What are the Basic Financial Models?
o What is Breakeven Analysis?
o A Statistical Approach to Non-Quantifiable Benefits
o What is Payback Period Methodology?
o What is Accounting Rate of Return Methodology?
Other Financial Methodologies

PAMANTASAN NG LUNGSOD NG MARIKINA

City University of Marikina
College of Information Technology

(Week 5 and 6)
o What Types of Methodologies Support IT Investment Decision-Making
Financial Techniques for IT Investment Decision-Making
Operations Research / Management Science Techniques for IT
Investment Decision-Making
Techniques Specifically Designed for IT Investment Decision-Making
Other Techniques for IT Investment Decision-Making
o What is Present Value Analysis Methodology?
Net Present Value Analysis Methodology
Computer-based Solutions
Unequal Investment Sizes
Unequal Investment Lives
o What is Return on Investment Methodology?
ROI Strategy for Enterprise Resource Planning Systems
o What is Internal Rate of Return?
Computer-based Solutions
o Cash Flows
Cost / Benefit Analysis
(Week 7)
o What is Cost / Benefit Analysis?
Define Problem
Identification and Quantification of Cost and Benefit
Compare Alternatives
Sensitivity Analysis
o What is Cost / Effectiveness Analysis?

Multi-Criteria Information Technology Decision-Making Methods

Critical Success Factors, Delphi Method and the Balance Scorecard Method
(Week 8)
o What are Critical Success Factors?
o What is the Delphi Method?
o What is the Balanced Scorecard Method?
Balanced Scorecard Components
Illustration of the Balanced Scorecard Method

MIDTERM EXAMINATIONS (WEEK 9)

Multi-Factor Scoring Methods and Analytic Hierarchy Process

(Week 10 and 11)
o What are Multi-Factor Scoring Methods?
Types of Multi-Factor Scoring Methods
Summary of Multi-Factor Scoring Methods Solutions Procedures
Sensitivity Analysis of Multi-Factor Scoring Methods
o What is Analytic Hierarchy Process?
The AHP Procedure
Summary of the AHP Solution Procedure
Decision Analysis and Multi-Objective Programming Methods
(Week 12 to 14)
o What is Decision Theory?

PAMANTASAN NG LUNGSOD NG MARIKINA

City University of Marikina
College of Information Technology

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Decision Theory Problem/Model Elements

Types of Decision Environments
Decision Theory Formulation and Solution Methodologies
A Decision Theory Problem/Model Formulation Procedure
Decision-Making under Certainty
Maximax Criterion
Maximin Criterion
Decision-Making under Risk
Origin of Probabilities
Expected Value Criterion
Expected Opportunity Loss Criterion
Decision-Making under Uncertainty
Laplace Criterion
Maximum Criterion
Maximax Criterion
Hurwicz Criterion
Minimax Criterion
Multi-Objective Programming Methodology
What is Goal Programming?
Goal Programming Problem/Model Elements
Goal Programming Problem/Model Formulation
GP Problem/Model Formulation Procedure
GP Problem/Model Formulation Problems
Gola Programming Complications and Model Assumptions
GP Complications
GP Model Assumptions

Other Information Technology Investment Methods

Benchmarking Techniques and Game Theory

(Week 15)
o What is Benchmarking?
A Benchmarking Procedure
A Benchmarking Methodology/Gap Analysis
o What is Game Theory?
Basic Structure of Game Theory Problem/Model
Objectives and Assumptions
Game Theory Problem/Model Formulation Procedure
o Solution Procedures for Game Theory Problems
Rational Choice Method: A Saddle Point Solution
The Minimax Solution Method
o A Minimax Solution for a Mixed Strategy Problem
A Computer-based Solution for a Mixed Strategy Problem
Investment Portfolio Methodologies
(Week 16)
o What are Investment Portfolio Methodologies?
o Wards Portfolio Approach
Evaluating Individual Investments
Setting Priorities
o Investment Mapping Methodology

PAMANTASAN NG LUNGSOD NG MARIKINA

City University of Marikina
College of Information Technology

Mapping the Investment Portfolio

Evaluating IT Investments
Managing Benefits
o Other Investment Portfolio Methodologies
Value Analysis and Benefit/Risk Methodologies
(Week 17)
o What is Value Analysis Methodology?
The Costs of Not Making the Right Information Technology Decision (and Strategies
on How to Avoid Them)
(Week 17)
o Macro-Economic View
o Micro-Economic View
o Strategies for Making the Right IT Investment Decisions and Avoiding IT Costs

FINAL EXAMINATION

WEEK 18

COURSE GRADING SYSTEM

Lecture
50%
Laboratory 50%
Final Grade = (Midterm + Finals)/2