Do One Assignment: ROI on an IT Project
Adult learners understand a topic best by doing it. It gives them both new skills and confidence in their ability to carryout the recommended procedures. In this project, you will estimate the relative value of VistA for the Veterans Administration. In order to make sure that the project can be done in a short time interval, no data collection is necessary. All needed data will be provided by the instructor in response to your queries. Use the approach proposed in the course to calculate the business value of the Vista information system to the Veterans Administration.
- In August 20, 2007 we asked the Department of Veterans Affairs to provide us two pieces of information under the Freedom of Information Act. We asked them for the budget of the Office of Information in the last decade (this office was recently organized and the FOIA officer had to estimate what the budget of the office would have been prior to the re-organization). We also asked for the number of patient records in VistA database. On October 16th 2007 they provided us with the following information:
Fiscal Year Budget of Office
of InformationNumber of
Records in VistAVHA Cost per Patient Index 2004 533,190,714 4,976,773 0.8% 2003 316,467,395 4,806,871 -4.6% 2002 245,998,730 4,545,559 -9.1% 2001 187,087,714 4,088,075 -7.3% 2000 171,353,392 3,673,612 -6.5% 1999 203,211,123 3,425,474 -8.6% 1998 199,997,062 3,273,020 -6.2% Table 2: Investment in IT, Use of VistA and Cost per Patient Index
- Calculate the correlations between (a) index on cost of care per patient, (b) number of records in VistA system and the budget of the office of information.
- Provide scatter diagram showing the relationship between IT investment (budget of Office of Information) and cost of care (VHA cost per Patient Index)? How►
- What came first, IT investment or changes in cost of care? How►
Here are some recent student works. Please do not assume that these are error free or exemplary work as the content of the assignment has changed over time: Karen►
Expert Solution Preview
Introduction: In this assignment, students are tasked with estimating the relative value of VistA for the Veterans Administration using the approach proposed in the course to calculate the business value of the Vista information system to the Veterans Administration. The data needed for this assignment will be provided by the instructor in response to students’ queries.
1. Calculate the correlations between (a) index on cost of care per patient, (b) number of records in VistA system and the budget of the office of information.
To calculate the correlations between the cost of care per patient, the number of records in the VistA system, and the budget of the office of information, students can use a correlation matrix or a correlation plot. A correlation matrix will show the correlation coefficients between all pairs of variables, which can give a comprehensive view of the relationships between the variables. A correlation plot is a visual representation of the correlation matrix, where the strength and direction of the correlation between variables are indicated by the color and shape of the points on the plot.
2. Provide scatter diagram showing the relationship between IT investment (budget of Office of Information) and cost of care (VHA cost per Patient Index).
To provide a scatter diagram showing the relationship between IT investment (budget of Office of Information) and cost of care (VHA cost per Patient Index), students can plot the two variables on a Cartesian plane, with the budget of the Office of Information on the horizontal axis and the VHA cost per Patient Index on the vertical axis. Each point on the plot represents a combination of IT investment and cost of care. The scatter diagram can show whether there is a relationship between the two variables, and how strong and how linear the relationship is.
3. What came first, IT investment or changes in cost of care?
To determine whether IT investment or changes in cost of care came first, students can use a time-series analysis to examine the trends in the two variables over time. They can plot the IT investment and cost of care on separate graphs, and look for patterns and changes in the trends. They can also calculate the lagged correlations between the two variables to see whether there is a time delay between IT investment and changes in cost of care. Alternatively, they can use a regression analysis to model the relationship between IT investment and cost of care, and test whether the coefficient for IT investment is statistically significant.
