The power of dedication

Benchmarking IT BenefitsExploring Outcome- andProcess-based Approaches

Diderik van Wingerden, M&I/PartnersPeter Schuurman, CITEREgon Berghout, CITERAugust 9, 2009

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Inform you… on our ongoing work for advancing IT benefits benchmarking practices and theory

Inspire you… to participate in the debate and join us in the challenge

Confuse you…

Goal for today

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Agenda

Our conceptual framework: Outcome- and Process-based Approaches for IT

benchmarking Empirical results:

What you already know: IT TCO benchmarking What we would like to add: IT benefits benchmarking Outcome-based: measurement of IT functionality Process-based: measurement of IT process maturity

What the future holds

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Conceptual framework: Outcome- and Process-based Approaches for IT benchmarking

Efficiency Effectiveness

Costmanagementassessment

Benefitmanagementassessment

BenefitCost

Outcome-based

Process-based

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What you already know: IT TCO benchmarking

…in a Rubik’s Cube

Cost carriers:Cost carriers:-ICT-managementICT-management-PC-WorkplacePC-Workplace-LANLAN-WANWAN-ApplicationsApplications-Speech facilitiesSpeech facilities

IT cost IT cost categories:categories:-HardwareHardware-SoftwareSoftware-PersonnelPersonnel-OtherOther

Measurement Measurement Objectives:Objectives:-InvestmentInvestment-DepreciationDepreciation-ExploitationExploitation

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What you already know: IT TCO benchmarking (2)

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What we would like to add: IT benefits benchmarking

Typical comments from participants:

“Now I know the costs, but what are the benefits?”

“How much value do we get from our IT?”

“Organizations that, for example, might appear to be expensive, could provide valuable additional functionality. Whereas other, seemingly more cost efficient, organizations might lose out on the benefits.”

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Outcome-based: measurement of IT functionality

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Process-based: measurement of IT process maturity

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What the future holds

Outcome- and process-based measurement proven useful for housing associations

Measurements are complementary Validation in other industries? Development of outcome-based or process-based?

Or both? Towards standardization and objectiveness? Link to business processes?

See “Calculating the importance of information systems” (www.citer.nl, working paper no. 10)

We are dedicated to the challenge!

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Are you…

Informed?

Confused?

Inspired?

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Descriptive statistics and correlations