benefits identification, assessment, validation and realisation for information technology projects

Benefits Identification, Assessment, Validation and Realisation for Information Technology Projects

Alan McSweeney

July 1, 2010 2

Objectives

• Discuss approaches to understanding, evaluating and achieving benefits identification, assessment, validation and realisation

• Define approach to achieving benefits identification, assessment, validation and realisation maturity

• Implementing a benefits identification, assessment, validation and realisation framework

July 1, 2010 3

IT and Benefits Realisation and Business Value

• Most organisations focus on the implementation of technology associated with information technology investments and not on the realisation of expected business benefits and value

• IT is commonly seen as failing to deliver value for money

• Benefits are not being achieved despite a project being considered a technical success

• One source of this failure to realise benefits and value is the use of approaches and methods that focus on improving the supply-side of IT delivery

• There is a need to engage business managers in such a way as to enables them to apply their collective knowledge to creating business benefits and value from IT-facilitated changes

• Realising and assessing business benefits from IT-enabled investments involves more than simply assessing Total Cost of Ownership for IT-related projects and managing the IT budget

July 1, 2010 4

Disconnect Between IT Investments and Business Value and Benefits

• 62% of organisations say they find it difficult to calculate ROI for IT investments

• 45% of organisations say their business value metrics do not accurately capture the value of IT investments

• 52% of organisations say that business executives are sceptical of efforts to measure business value of IT

• Only 41% of organisations perform an ROI assessment for IT budget

• Poor picture of IT investments and disconnect between expenditure and business benefits

July 1, 2010 5

Ensuring Strategic Project Alignment to Projects

Business Vision and

Goal

Strategy

Business Plan

Managingthe IT

BudgetManaging IT Like a

Business

Managing and

Delivering IT Capability

Managing IT for Realising and Assessing Value

Closing the Loop Between

Cost and Value

Business Strategy

IT Strategy and Delivery

Link Projects to Business

Benefits and Business Value

Demonstrate Achievement of

Business Benefits and Business Value

July 1, 2010 6

Benefits Management

• Benefits management is the process of organising and managing so that the potential and identified benefits arising from the use of IT are actually achieved

• Need a comprehensive framework to embed business benefit and business value achievement

• Need to ensure maturity of business value and benefit identification, assessment, validation and realisation practices and structures

July 1, 2010 7

Benefits of a Structured Approach to Benefits Identification, Assessment, Validation and Realisation

• Enables organisations to clearly and consistently articulate IT’s contribution to achievement of business objectives

• Increases confidence in IT’s ability to forecast and achieve business value from IT investments through consistent and objective benefits processes including tracking and control

• Addresses management culture required to make decisions, take corrective actions and communicate results to increase management confidence in IT’s ability to deliver

July 1, 2010 8

Realising Benefits from IT Investments

• Fundamental principles of realising benefits from IT investments

− Just having information technology does not automatically generate any business benefits or create business value

− IT projects can generate negative outcomes that must be actively avoided and IT must work to ensure that positive outcomes are converted to deliver real business benefits and value

− Benefits and value are not the automatic outcomes of IT projects and must be actively managed for throughout the life of the solution

− Benefits arise when IT enables people to perform their work more efficiently or effectively or do new work or enable new ways of working

− Only business managers and users can generate business benefits by making changes so the business must accept this responsibility and become involved in projects with an IT components

• These principles must underlie benefits a benefits identification, assessment, validation and realisation framework

July 1, 2010 9

Benefits Identification, Assessment, Validation and Realisation Framework

Identify Potential

Benefits and Associated

Value

Assess Identified


Value

Validate Benefits and Associated

Value

Ensure Realisation


Value

July 1, 2010 10

Effective Benefits Identification, Assessment, Validation and Realisation Within the IT Function

Benefits Identification, Assessment,

Validation and Realisation

IT Leadership and Governance

Strategic Planning

Programmme and Project

Management

Total Cost of Ownership

Risk Management

Budget Management

Funding and Financing

Portfolio Planning and Prioritisation and Management

Structures, processes and ability to make decisions to

review and adjust benefits realisation

plans

Definition of organisation’s

strategic objectives as basis for IT

demand

Capabilities to develop and

update benefits realisation plan for programmes

and projects

Definition of organisation’s strategic objectives as basis for

IT demand

Practices to support the organisation in assessing and

monitoring the risk throughout the IT function

Benefits from IT projects are

important to budget creation and management

Ability to evaluate

benefits of opportunities

is important to decisions on IT

funding

Making effective portfolio planning and prioritisation decisions requires benefits valuation

July 1, 2010 11

Achieving Benefits

• To increase the likelihood of success from IT investments, organisations must identify the different causes of benefits before developing any project implementation plan

• Types of IT projects with very different approaches to benefits management− Fixing or improving something that exists

• Resolve problem

• Improve integration

− Implementing a new initiative • New system

• New processes

• Need to focus on the changes needed to achieve results and take full advantage of new facilities offered rather than on IT features

• Effective change management is crucial to achieving benefits

July 1, 2010 12

Achieving Benefits – Some Questions to Ask

• Why is there a need to improve?

• What improvements are needed? What improvements are possible or achievable? Have the improvements been agreed by all stakeholders?

• What benefits will be realised by each stakeholder if the business objectives are achieved? How can each benefit be measured?

• Who owns each of the benefits and will be accountable for its delivery?

• What business changes are needed to achieve each benefit? Have the explicit links between each benefits and required business changes been identified?

• Who will be responsible for ensuring the business changes are made successfully?

• How and when can the changes be made? Who will make the changes? Does the business have the ability and capacity to make the changes?

July 1, 2010 13

Benefits Dependency Network

• Benefits Dependency Network (BDN) is an approach to linking:

− Information Technology Enablers, Changes and New Capabilities – enabling technologies and functions and facilities needed to support the realisation of the identified benefits and to allow the necessary changes to be undertaken

− Business Changes – business activities and new ways of working that are required to ensure that the desired benefits are realised

− Enabling Changes - prerequisites for achieving the business changes or that are essential to bring the new system into effective operation

− Business Objectives - high level priorities in relation to the drivers, outcomes and improvements to be delivered on completion of the project

− Business Benefits - outcomes of a change that are deemed to be positive by a stakeholder and that are valuable to the organisation and are measureable

− Stakeholders - individuals or groups who will benefit from the project and areeither affected by or directly involved in making the changes needed to realise the benefits

July 1, 2010 14

Types of Changes

• Business Changes - Permanent changes to working practices, processes, procedures, interactions and relationships that will cause the benefits to be delivered−Generally need new IT system to be in place

−May require enabling changes to be implemented

• Enabling Changes - Typically one-time changes that are pre-requisites for making the business changes or are necessary to bring the new system into effective operation− Can be made in advance of system implementation

− Training

− Processes redesign

−New work practices

− Changes to job roles and responsibilities

July 1, 2010 15


Information Technology

Enablers, Changes and

New Capabilities

Enabling Changes

BusinessChanges

BusinessBenefits

BusinessObjectives

Require Allow EnableProvide for Delivery of

• BDN provides a framework for explicitly linking the overall investment objectives and the requisite benefits with the business changes which are necessary to deliver those benefits and the essential IT functionality to both drive and enable these changes to be made.

• BDN forms part of the benefits realisation plan

• Helps keep the focus on benefits realisation during the program execution

• Allows variations of the project or program to be assessed for their impact on benefits realisation

July 1, 2010 16




New Capabilities

Enabling Changes

BusinessChanges

BusinessBenefits

BusinessObjectives

Means to Achieve Changes

Ways to Achieve Changes Results of Changes

July 1, 2010 17


What Information Technology Capabilities

and Features Offer

What Users Do With

Information Technology Capabilities


Achieve

What the Business

Gains From Information Technology Capabilities

Why the Business Uses The

Information Technology Capabilities

Understand Why the Business Will Use the Information Technology System


Are Required

What the Business Has

to Do

What the Business Needs to Provide

What the Business

Needs To See

What the Business Wants

Understand What Information Technology System is Needed to Deliver on Requirements

July 1, 2010 18


• Shows the link from the solution, through business activities, outcomes and benefits to the organisation's overall drivers

• Used to confirm that the solution being introduced will actuallyprovide the results you are seeking

• Any function within the proposed solution that is not linked to a benefit is potentially of doubtful value

• Functions with many link or links to key benefits can be identified and given extra attention

• BDN is a complex approach that requires benefit identification, assessment, validation and realisation maturity within the organisation

• Imposes a rigour on the organisation in analysing benefits from projects

July 1, 2010 19

Constructing a Benefits Dependency Network

• Create registers for:

− Business Objectives

− Business Changes

− Business Benefits

− Information Technology Capabilities

− Enabling Changes

− Stakeholders

• Define, validate and create linkages

July 1, 2010 20

Constructing a Benefits Dependency Network

IT Capability

1

Enabling Change 1

BusinessChange 1

BusinessBenefit 1

BusinessObjective

1

IT Capability

2

Enabling Change 2

BusinessChange 2

BusinessBenefit 2

BusinessObjective

2

IT Capability

3

Enabling Change 3

BusinessChange 3

BusinessBenefit 3

BusinessObjective

3

IT Capability

4

Enabling Change 4

BusinessChange 4

BusinessBenefit 4

BusinessObjective

4

IT Capability

5

Enabling Change 5

BusinessChange 5

BusinessBenefit 5

BusinessObjective

5

July 1, 2010 21

Key Building Blocks of Benefits Identification, Assessment, Validation and Realisation Framework

Embedding benefits management and realisation processes in widermanagement and decision-making processes

Engaging with stakeholders to improve management confidence in the ability of IT enables investments to deliver measurable business value

Benefits Culture

Tracking benefits between baseline / forecast and post-deployment to ensure that benefits are delivered proves the value IT investments deliver to the bottom line

Adopting objective and reliable value measurement methods and validated data to ensure consistent reporting across all investments to demonstrate that IT can enable the delivery of business value

Benefits Process

Establishing a common language for business value and benefits between IT and the business

Using objective, consistent and accepted benefits and value evaluation methods

Enabling better investment decisions through robust business cases and comparable data across programmes and projects

Benefits Planning

July 1, 2010 22

Structure of a Comprehensive Benefits Identification, Assessment, Validation and Realisation Framework and Associated Organisational Skills

Benefits Identification, Assessment, Validation

and Realisation Framework

Benefits Planning Benefits Process Benefits Culture

Establishing a Business Value Language

Creating Benefits Templates and Guidance

Establishing a Benefits Forecasting Capability

Establishing a Benefits Realisation Capability

Business Value Tracking and Reporting

Implementing and Using Standard Benefits Process

Using Business Value Data in Decision Making

July 1, 2010 23

Benefits Identification, Assessment, Validation and Realisation Organisational Skills

Ensuring the use of business value results in investment decision making and ensuring investment decisions are based on solid business cases is important for achieving a sustainable benefits culture

Using Business Value Data in Decision Making

Implementing and embedding the use of a standard benefits realisation process and uses benefits realisation data in other processes, e.g. budgeting and portfolio management is important for achieving a sustainable benefits culture

Implementing and Using Standard Benefits Process

Establishing a capability to measure benefits over lifecycle of investment, review results and adjust if required within dynamic of business environment is important in the benefits planning process

Business Value Tracking and Reporting

Establishing a capability to identify benefits dependencies and assign clear accountabilities for value realisation, measurement and reporting is important in the benefits planning process

Establishing a Benefits Realisation Capability

Establishing a capability to support benefits forecasts with reliable business value data including a capacity for calculation of intangibles and benefit risks is important in the benefits planning process

Establishing a Benefits Forecasting Capability

Creating and then using standard templates to ensure consistent and objective benefits evaluation and measurement is important to allow comparison of investments in prioritisation decisions and organisation-wide consistent value reporting

Creating Benefits Templates and Guidance

Adopting a business benefits metrics as common language of describing business value between business and IT to consistently capture business benefit is important for alignment of objectives

Establishing a Business Value Language

July 1, 2010 24

What Does Benefits Identification, Assessment, Validation and Realisation Maturity Look Like?

• Using consistent set of business benefit metrics and templates to both develop effective business cases that can be compared for risk/value/cost decision making

• Creating and using a common value language, metrics and guidancefor business case and realisation plan development and execution

• Be able to create and execute benefit realisation plans, from which delivered value can be tracked, measured and reported on

• Implementing benefits identification, assessment, validation andrealisation across the organisation

• Leveraging performance results and reporting feedback to maintain consistency, reduce risk and drive overall realised business value

• Provide a business value function that can help drive best practice, readiness and consolidate and report both business and benefit realisation maturity investment results, to help embed benefit realisation as part of normal business operations

July 1, 2010 25

Benefits Management Maturity Levels

1 Ad Hoc

2 Basic

3 Intermediate

4 Advanced

5 Optimising

Increasing

Business

Value

July 1, 2010 26

What Does Benefits Identification, Assessment, Validation and Realisation Maturity Levels

Benefits

Planning

Benefits

Process

Benefits

Culture

Establishing a Business

Value Language

Creating Benefits

Templates and Guidance

Implementing and Using

Standard Benefits Process

Using Business Value Data

in Decision Making

Establishing a Benefits

Forecasting Capability

Establishing a Benefits

Realisation Capability

Business Value Tracking

and Reporting

Isolated and sparse

use of business value

language

No templates or

guidance in use

Few consistent

measures available

for investment value

assessment or quality

checks

Limited benefits from

benefits realisation

assessment

No benefits

forecasting capability

No consistent

encouragement for

value focus nor

training provided

Basic business cases

with no real value

tracking or reporting

Business value

language agree but in

limited use

Ad hoc use of business

case templates/

guidance

Templates used for

investment

assessment with

inconsistent

application

Limited tracking of

benefits and project

reporting and

communications

Linking IT to business

benefits is limited

Limited informal

training and isolated

adoption

Investment decisions are

functionally driven to

secure budgets

Business value language

linked to business unit

goals

Business case

templates/ guidance

used in IT and business

units

Organisation has an

improving capability in

benefits planning

Business value

validated by

stakeholders with

investments, assessed

on financial and non

financial performance

IT and business

alignment is reinforced

with formal training

IT and business

alignment is reinforced

with formal training

Defined business value

guidance, templates and

processes

Business value

language are aligned

to enterprise goals

Business case

templates are aligned

to enterprise goals and

are now mandatory for

enterprise investments

Defined processes

across business and IT

domains

Business value claims

are consistently

validated and

forecasting allowing

ease of comparison

Organisation ensures

formal benefits training

and use of value

assessment,

Organisation ensures

formal benefits training

and tracking and

reporting of realised

valueBusiness cases and

investment reviews

support decision-

making and delivery of

stakeholder benefits

Business value vocabulary and

language pro-actively

enhanced to maintain

alignment to extended

strategic objectives.

Templates pro-actively

enhanced to maintain

alignment to extended

enterprise strategic objectives#

Defined processes with

clear ability to adapt and

extend

Collaboration with

extended enterprise

Benefits management

used and adopted across

the extended enterprise

Business cases and

stakeholders optimise value

from investments and

experience from investment

reviews

Very high confidence in

benefits process and results

from senior management

Level 1 Level 2 Level 3 Level 4 Level 5

July 1, 2010 27

Improving Benefits Identification, Assessment, Validation and Realisation Maturity

1 Ad Hoc 2 Basic 3 Intermediate 4 Advanced 5 Optimising

What Are the Benefits

Set up common business benefit metrics

Set up standard business case template and consistent benefits valuation process

What to Do

Allows alignment of business and it objectives with performance criteria

Enables like-for-like comparison of competing investment decisions

Set up standard business realisation plan

Create alignment process for business realisation plan with all stakeholders and business objectives

Measure business benefits metrics pre- and post-implementation

Implement control system to constantly measure business benefits over project lifetime

Define project adjustment process

Implement IT business value reporting system

Set up system to analyse and simulate business value effects of it projects

Install process to continuously review and update bar process

Exploit benefits realisation data to improve other IT capabilities

Ensures accountability for business benefits realisation on IT and business stakeholders

Demonstrates business benefits delivered and enabled from IT investments

Allows adjustments of IT investments with changing business or IT situation

Increases overall confidence in business benefits measurement

Allows reliable reporting of IT’s business value contribution to the business

Allows proactive adjustment of IT investments based on business needs or new capabilities available

Allows detection of business benefits

Creates basis for business value indicated improvements of other processes

July 1, 2010 28

Types of Project

• Fixing or improving something that exists

− Resolve problem

− Remove constraint

− Improve integration

• Implementing a new initiative

−New system

−New processes

• Each types of IT projects has a different approach to benefits management

July 1, 2010 29

Project – Fix an Existing Problem



New Capabilities

Enabling Changes

BusinessChanges

BusinessBenefits

BusinessObjectives



Define the improvement targets and potential business benefits

Identify the combinations of IT facilities, business changes and enabling that can

contribute to achieving each of the benefits

Design and agree on solution that combines the most cost effective and low risk mix of IT and business changes to achieve the key benefits

12

3

1

2

3

July 1, 2010 30

Project – Implement a New Solution



New Capabilities

Enabling Changes

BusinessChanges

BusinessBenefits

BusinessObjectives



Create an overall vision for the new solution

Describe the new ways of working and the benefits

these will deliver

Assess the feasibility of making each of the changes and of achieving each of the benefits

1

1

23

4

23

Define IT solution that enable the

changes

July 1, 2010 31

Business Case and Benefits Management

• An appropriate business case is needed to support a decision to make an investment in a project, programme or change

• Preparing the business case so it can be presented for agreement requires a clear understanding of the proposition in terms of scope, objectives, options, implementation and investment and return

• Purpose of a business case is to capture the reason and justification for initiating a project

• Business cases should be appropriate to the size and scope of the project as well as the needs of the organisation

• Key elements of any business case should be the background of the project, the expected business benefits, the options considered (with reasons for rejecting or carrying forward each option, including the option of doing nothing with the costs and risks of inactivity), the expected costs of the project, the tangible savings, a gap analysis and the assumptions and expected risks

• Business case represents the apex of an analysis, design and planning exercise

July 1, 2010 32

Business Case Generation Process

• Confirm scope and requirements outputs and scheduled

• Identify, analyse and document business, functional, technical and implementation requirements and analyse existing processes and systems impacted by the proposed investment

• Design a logical solution to meet the defined and agreed requirements

• Analyse the options for implementing the solution – package acquisition and customisation, existing system upgrade, system development

• Create a realistic plan to implement the solution, incorporating resource requirements and constraints and includes risk, assumptions and dependencies

• Quantified the full costs to implement and operate the solution and identify the tangible savings

Scope Definition and Agreement

Requirements Analysis, Definition

and Agreement

Solution Architecture

Specification and Design

Solution Implementation

Options and Selection

Implementation Plan Roadmap

Financial Analysis

BusinessCase

July 1, 2010 33

Elements of Business Case

Plan for achieving the desired outcome with key milestones and dependencies

Contingency plans

Risks identified and mitigation plan

External supplier plans

Resources, skills and experience required

Plan for Achievement

Statement of available funding and details of projected whole-life cost of project (acquisition and operation), including all relevant costs

Expected financial benefits

Whole-Life Costs

Proposed sourcing option with reasons

Key features of proposed commercial arrangements

Procurement approach/strategy with supporting details

Procurement and Implementation

Cost/benefit analysis of realistic options for meeting the business need

Statement of possible soft benefits that cannot be quantified in financial terms

Identify preferred option and any trade-offs

Options Evaluation and Identification

Business need and its contribution to the organisation's business strategy

Key benefits to be realised

Critical success factors and how they will be measured

Strategic Fit

July 1, 2010 34

Implementing Benefits Identification, Assessment, Validation and Realisation

• Key requirements− Ability to get lifetime costs right

− Ability to define benefits correctly and effectively

− Ability to manage the benefits management process

− Ability to increase and sustain benefits management maturity

• Use existing methodologies and frameworks to implement key requirements quickly− ITIM

− Benefits Dependency Network

− ValIT

− Organisational change and commitment

• Create customised integrated approach to suit the needs of your organisation

• Adapt and simplify as required – take the best and most suitable elements

July 1, 2010 35

Ability to Get Lifetime Costs Right

• Key requirement – no point in having effective benefits management framework if project costs are not accurate and realistic

• Use ITIM methodology – strong focus on cost management

July 1, 2010 36

Characteristics of Credible Cost Estimates

• Clear identification of requirements of the ultimate deliverable

• Broad participation in preparing estimates

• Availability of valid data for performing estimates – historical, experience, benchmarks

• Standardised and comprehensive estimate structure that includes all possible sources of cost

• Provision for uncertainties – include known costs explicitly and allow for unknown costs

• Recognition of inflation

• Recognition of excluded costs

• Independent review of estimates for completeness and realism

• Revision of estimates for significant changes in requirements

July 1, 2010 37

Challenges of Developing Good Cost Estimates

• Requires detailed, stable, agreed requirements

• Agreed assumptions

• Access to detailed documentation and historical data for comparison

• Trained and experienced analysts

• Risk and uncertainty analysis

• Identification of a range of confidence levels

• Adequate contingency and management reserves

July 1, 2010 38

Reasons for Good and Bad Cost Estimates

Detailed, Stable, Agreed Requirements Agreed Assumptions

Detailed Documentation and Historical Data

Effective Risk and Uncertainty Analysis

Trained and Experienced Analysts

Identification of a Range of Confidence LevelsAdequate Contingency and

Management Reserves

Complex Project or Technology

Unrealistic Project Savings

New Processes Untrained and Inexperienced Analysts

No or Limited Comparison Data Available

Project Instability

Unrealistic Assumptions Overoptimism

Unrealistic or Unreliable Data

Unfamiliar Technology or First-Time UseProblems Getting Access to Data Unreasonable

Project Baseline

Ineffective Risk and Uncertainty Analysis

• Lost of reasons for and causes of inaccurate cost estimates

July 1, 2010 39

Sources of Risk and Uncertainty in Estimating Costs

• Lack of understanding of the project requirements

• Shortcomings of human language and differing interpretations of meaning of project

• Behaviour of parties involved in the cost estimation process

• Haste

• Deception

• Poor cost estimating and pricing practices

July 1, 2010 40

Ability to Define Benefits Correctly and Effectively

• Use an approach such as Benefits Dependency Network

July 1, 2010 41

Ability to Manage the Benefits Management Process

• Use elements of ValIT framework

− IT-enabled investments are managed as a portfolio

− IT-enabled investments include the full scope of activities that are needed to achieve business value

− IT-enabled investments will be managed through their full life cycle

− Value delivery practices recognises that there are different categories of investments that will be evaluated and managed differently

− Value delivery practices define and monitor key metrics to enable quick response to any changes or deviations

− Value delivery practices engage all stakeholders and assign appropriate accountability for the delivery of capabilities and the realisation of business benefits

− Value delivery practices are continually monitored, evaluated and improved

July 1, 2010 42

Val IT Processes and Management Practices Framework

ValIT

VG – Value Governance PM – Portfolio Management IM – Investment Management

VG1 - Ensure Informed and Committed Leadership

VG2 - Define and Implement Processes

VG3 - Define Roles and Responsibilities

VG4 - Ensure Appropriate and Accepted Accountability

VG5 - Define Information Requirements

VG6 - Establish Reporting Requirements

VG7 - Establish Organisational Structures

VG8 - Establish Strategic Direction

VG9 - Define Investment Categories

VG10 - Determine Target Portfolio Mix

VG11 - Define Evaluation Criteria by Category

PM1 - Maintain Human Resource Inventory

PM2 - Identify Resource Requirements

PM3 - Perform Gap Analysis

PM4 - Develop Resourcing Plan

PM5 - Monitor Resource Requirements and Utilisation

PM6 - Establish Investment Threshold

PM7 - Evaluate Initial Programme Concept Business Case

PM8 - Evaluate and Assign Relative Score to Programme Business Case

PM9 - Create Overall Portfolio View

PM10 - Make and Communicate Investment Decision

PM11 - Stagegate (and Fund) Selected Programmes

PM12 - Optimise Portfolio Performance

PM13 - Reprioritise Portfolio

IM1 - Develop a High-Level Definition of Investment Opportunity

IM2 - Develop Initial Programme Concept Business Case

IM3 - Develop Clear Understanding of Candidate Programmes

IM4 - Perform Alternatives Analysis

IM5 - Develop Programme Plan

IM6 - Develop Benefits Realisation Plan

IM7 - Identify Full Lifecycle Costs and Benefits

IM8 - Develop Detailed Programme Business Case

IM9 - Assign Clear Accountability and Ownership

IM10 - Initiate, Plan and Launch the Programme

IM11 - Manage Programme

IM12 – Manage and track Benefits

IM13 - Update Business Case

IM14 - Monitor and Report on Programme Performance

IM15 - Retire Programme

PM14 - Monitor and Report on Portfolio Performance

July 1, 2010 43

Summary

• IT is commonly seen as failing to deliver value for money

• Benefits and value must be actively managed for

• Realising and assessing business benefits from IT-enabled investments involves more than simply assessing Total Cost of Ownership for IT-related projects and managing the IT budget

• Key requirements− Ability to get lifetime costs right− Ability to define benefits correctly and effectively− Ability to manage the benefits management process− Ability to increase and sustain benefits management maturity

• Use existing methodologies and frameworks to implement key requirements quickly− ITIM− Benefits Dependency Network− ValIT− Organisational change and commitment

• Effective benefits management enables organisations to clearly and consistently articulate IT’s contribution to achievement of business objectives

July 1, 2010 44

More Information

Alan McSweeney

[email protected]