benefits identification, assessment, validation and realisation for information technology projects
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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
Benefits and Associated
Value
Validate Benefits and Associated
Value
Ensure Realisation
Benefits and Associated
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
Benefits Dependency Network
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
Benefits Dependency Network
Information Technology
Enablers, Changes and
New Capabilities
Enabling Changes
BusinessChanges
BusinessBenefits
BusinessObjectives
Means to Achieve Changes
Ways to Achieve Changes Results of Changes
July 1, 2010 17
Benefits Dependency Network
What Information Technology Capabilities
and Features Offer
What Users Do With
Information Technology Capabilities
What 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
What Information Technology Capabilities
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
Benefits Dependency Network
• 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
Information Technology
Enablers, Changes and
New Capabilities
Enabling Changes
BusinessChanges
BusinessBenefits
BusinessObjectives
Means to Achieve Changes
Ways to Achieve Changes Results of Changes
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
Information Technology
Enablers, Changes and
New Capabilities
Enabling Changes
BusinessChanges
BusinessBenefits
BusinessObjectives
Means to Achieve Changes
Ways to Achieve Changes Results of Changes
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
alan@alanmcsweeney.com
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