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Demand and Value Assessment
This information covers the Demand and Value Assessment Methodology Version 1. AGIMO has since developed a replacement version called the ICT Business Case Guide and Tools as part of its ICT Investment Framework. The Guide and Tools are available to download by visiting the Business Case Guide and Tools page. The following information is provided for reference only.
The 2003 E-government Benefits Study provided the first data on the value and benefit of e-government services. It quantified the key benefits of e-government services, established considerable value and recommended consistent methods to assess demand, value and agency return on investment. As a first step to establishing common measurement criteria, Demand and Value Assessment Methodologies were developed.
The ANAO report titled Quality Internet Services for Government Clients - Monitoring and Evaluation by Government Agencies highlighted the importance of agencies developing and implementing policies on monitoring and evaluating their use of the Internet.
Why use the Demand and Value Assessment Methodology?
The Demand and Value Assessment Methodologies assist agencies in developing transparent and auditable assessments of demand and value propositions for online government programs. These propositions underpin the business case and assist in substantiating the viability of the initiative, in justifying resource investment and in demonstrating transparency and accountability. The methodology provides for a consistent approach across agencies.
The application of the Demand and Value Assessment methodologies has various advantages:
At a project level it enables:
- Preparation of a business cases, justification of expenditure and policy decisions;
- Assessment of progress towards project and program goals and targets; and
- Impact assessment on agency business, customer base, demand and social value.
At the government agency level it enables the:
- Evaluation of contribution to overall agency goals, and the agencies' contribution to whole of government strategies;
- Analysis of the capacity of agencies to deliver e-government services;
- Assessment of impacts on clients to ensure the right mix of services are on offer;
- Identification of future policy and priority areas for improvement and investment; and
- A mechanism for sharing of information, achievements and strategies with other agencies and contribution to the development of best practice approaches.
Why is Demand and Value Important?
Demand and Value have been chosen as the two key criteria as consideration of demand forces enables government to assess a service from the perspective of the end users. Rather than implementing a program for implementation's sake, demand assessment forces the provider to start with the end user and determine the nature of their needs and how they might be best attended to.
Value is a more traditional assessment, typically centred upon costs and benefits, but in the case of government, a consideration in determining value must also take account of social and governance implications and intangible benefits.
What is the Demand and Value Assessment Methodology?
The Demand & Value Assessment Methodology (DAM and VAM) is an interactive program designed to capture information to gauge and forecast how well equipped any proposed online delivery is to service its market and generate valuable results.
It comprises a Demand & Value Assessment Methodology Manual including explanatory notes and instruction, nineteen Activities to guide and stimulate business case formation, a CD ROM containing all Activity files and Spreadsheets in Excel format and Quick Reference cards. The manual is written as an interactive device, prompting the reader to become a participant. It provides discussion points, independent research and workshops to assist an assessment of any intended e-government service in respect to the demand it must address, government resources and capability in doing so, the likely returns from a financial and social perspective and any inherent risks.
The DAM & VAM represents a standardised system to forecast and articulate demand and value in any proposed e-government service. When designing these assessment tools, attempts were made to adopt a whole of government approach.
Who should be using these methodologies?
The DAM and VAM are designed for Business Managers within government agencies responsible for investigating, planning and implementing on-line programs. These staff should work in conjunction with other agency personnel who are able to supply business and technical information required to assess the demand and value of the online service.
Typically these people will be experienced Project Managers (Executive Level Staff), skilled in locating, synthesising and documenting data. They should also be experienced in the preparation of business cases that can be presented at CEO level or equivalent.
How can I get access to the methodology?
The DAM & VAM are designed specifically for government users and as such a copy of the Manual and its accompanying CDROM has been distributed to every Commonwealth Government Agency via the Chief Information Officer. The materials are also available for download below. Additional hardcopies may be obtained by contacting ictinvestmentframework@finance.gov.au.Training is no longer offerred on the DAM & VAM.
Demand & Value Assessment Methodology Manual - (1.6Mb)
DAM & VAM Spreadsheet - (445kb)