Value Assessment

Investing in Google Analytics, IVK will gain tangible assets through marketing which is often seen as intangible. Google Analytics will allow IVK to keep track of how they are doing digitally overall.  If we are looking at the data from an ROI perspective, IVK can expect to see an increase in revenue. This is based off a report given by Google Economic and it asserts that for every $1.00 spent on AdWords, a company will generate $2.00 in sales.  IVK can expect to double the amount of money they allocate to advertising and it is beneficial to invest in Google Analytics where it will give IVK a competitive edge that the company will see digitally. The impetus behind investing in IT and software such as Google Analytics is to keep a business on an even playing field with its competitors (Austin, 2016). Based on Frost (2017), 98% of searchers choose a business that is on page one of the results they get. Using parts of Google Analytics to promote its website, IVK can gain a competitive advantage by having its website listed above competitors on the search engine. It enables marketers to promote their websites so that they land on page one of the search engine, which will lead to more clicks increasing the likelihood of additional sales.

Google Analytics enables marketers to have a stronger grasp of their audience.  This allows marketers to generate improved marketing strategies to specifically target their ideal customers. The industry that IVK operates in, the finance and insurance industry, has the second highest conversion rate among all other industries trailing only the home goods industry. The utilization of Google AdWords would result in a tremendous positive impact for IVK by increasing the amount of traffic on their website. Potentially leading to increased revenue that could help the company achieve the growth it saw in its startup days. The data provided from Google Analytics premium will allow IVK to better service existing customers in addition to enabling the company to better assist with the large number of customer inquiries that are currently not being fulfilled.

Table A

Return on Investment
Project Return/Savings	Year 0	Year X+1	Year X+2	Year X+3
Salary Savings (10 RIF)	-	($652,854)	($652,854)	($652,854)
Outside Vendor Savings	-	($785,020)	($785,020)	($785,020)
Depreciation/Amortization	-
Total Cost Savings	-	($1,437,874)	($1,437,874)	($1,437,874)
Profit Before Taxes Increase	-	$1,437,874	$1,437,874	$1,437,874
Taxes at 30%	-	$431,362	$431,362	$431,362
Profit After Taxes	-	$1,006,512	$1,006,512	$1,006,512
Add Back Depreciation	-
Projected Cash Flow	($595,000.00)	$1,006,512	$1,006,512	$1,006,512

We spend $595,000 in cash is spent at the beginning of the project for a 3 year license (considered as Year 0). Then we anticipate a cash return of $1,006,511 in each of the next three years using the numbers just outlined.

Payback ROI	0.059
Initial Investment    =	Payback Period	$595,000.00
Cash flow/year	$1,006,511.00
Net Present Value (NPV)
	(595,000)+1,006,511/(1.09)+1,006,511/(1.09)2
Net Present Value (PV) =   +	1,006,511/(1.09)3
Net Present Value (PV) =   +	$105,967.00
Internal Rate of Return
(IRR)	159%

Google Analytics provides similar advantages that are qualitative and intangible. For instance, through using this application, an edge is gained on competition because of being Google certified. While some companies may not see value in this, it increases the quality of the service for a client who may be specifically looking for a company with this certification. There is also the value of having more knowledge regarding analytics. While some companies may have a professional for this specific department, having Google Analytics gives you the ability to have traits of an analytics pro without being one. As mentioned in cost analysis, Google Analytics has two options, a free standard version and Google Analytics 360 Suite, which is offered at a starting rate of $150,000 per year (Blast, n.d.).  The benefits of using Google Analytics 360 Suite are: enterprise analytics, tagging, site optimization, data visualization, market research, attribution and audience management. Service and support is included in the price point as well as ongoing training (Google, n.d.). Other benefits of Google Analytics include: ability to analyze sources of traffic, information about customers, gauge specific page population, calculate website bounce rate, analyze traffic flow, and review historical data.

As IT is advancing in our world today, Google now offers a program called Google’s Information Technology Residency Program (ITRP), where a career in technology will expand innovations to make support more efficient. In becoming an IT leader, receiving specialized training in networking, infrastructure and multi-platform system administration, will be just the beginning in developing further skills. Learning how operation teams work, focusing on networking, security, or system administration, this allows an individual to experience the diverse support landscape that Google should offer. Austin in his book implies the value of IT from a conversation between Barton and Maggie, wherein Maggie gives the example of Zara and how they used IT towards their benefit and how this might not be a case for other organization investing same amount in IT as Zara and not see any value from IT. To summarize, value from IT can arise from its ability to confer on a firm some capability that may separate it from its rivals. Similarly, in Google, Analytics can be a useful tool that helps in quantifying and assessing the data. They help in forecasting the trend or in advertising or branding by analyzing the correct key search terms and in creating value by making informed choices from the data generated.

Michael and Andres in the article “How CIOs should think about business value” speaks on how a company can use IT to gain competitive edge over other companies. IT’s important value-in-use varies with company’s core business priorities, like whether aiming for organizational transformation or operational excellence. Google Analytics proposition in businesses is developing the business by identifying the key search terms from the database generated and advertising or branding them as required to achieve the target goals.

URL on Google:
https://youtu.be/gXcaJvqO7ag
The link above explores opportunities at Google in IT. Get an insight on current residents and the programs benefits and expectations.

References -


“Benefits of online advertising and AdWords.” Google Partners Help, Google, support.google.com/partners/answer/6123875?hl=en.

“How CIOs should think about business value” | McKinsey & Company. (n.d.). Retrieved October 24, 2017, from https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/how-cios-should-think-about-business-value

Google (2011). Google’s Economic Impact. Retrieved from: https://static.googleusercontent.com/media/economicimpact.google.com/en//reports/2011/ei-report-2011.pdf

Google Analytics 360 vs. Standard (Comparison Chart). Blast (n.d.). Retrieved October 15, 2017, from http://www.blastam.com/google-analytics-360-standard-comparison

Google. (n.d.). Google Careers. Retrieved from https://careers.google.com/jobs#!t=jo&jid=/google/information-technology-residency-program-2300-traverwood-dr-ann-arbor-mi-usa-2846500048&

Web, Mobile, Marketing & Digital Analytics. (n.d.). Retrieved October 19, 2017, from https://www.google.com/analytics/analytics/#?modal_active=none