A New Approach and Framework for IT Business Cases
The authors argue that organizations pay lip service to IT investment management - they insist on a business case for every IT investment but do not apply the rigor to what is contained in it. The resulting lack of IT investment results is both expected and can be fixed using a better business case framework developed by the authors.
While most organizations today demand a robust business case justifying investments in information technology (IT), our research finds that few are satisfied with their ability to identify and quantify the expected benefits from these investments. Surprisingly, we found that many organizations don't demand rigorous evidence to support the justification for investment–thus allowing benefits to be overstated and projects oversold.
Based on our work with organizations over many years, we have developed a new approach for building a business case. It differs from conventional approaches because it recognizes different types of benefit, identifies measures for all benefits, and gathers evidence for the size of the expected benefits. The approach also requires that a benefit owner is identified for each benefit, to ensure commitment and aid benefit delivery. Benefits are explicitly linked to both the IT and the business changes that are required to deliver them. Responsible individuals are also identified for ensuring the necessary business changes occur.
Our research also identifies a wider role for the business case. Typically, the main objective in building the business case for an IT project is to obtain approval for the financial spend. But a comprehensive and robust business case also: (1) Enables priorities to be set for investing in different projects; (2) Identifies how the combination of IT and business changes will deliver each of the benefits; (3) Ensures commitment from business managers; and (4) Creates a basis for reviewing the investment when it is complete.
We surveyed over 100 European organizations to understand current practices in developing business cases and to identify how those practices relate to the success of IT investments. The results show that organizations that adopt our suggested approach to building business cases are more successful in delivering value from their IT investments.
Documents are in common file formats such as Microsoft Word (doc), Powerpoint (ppt), Excel (xls,csv,xlsx), and Adobe pdf.Download
This paper presents a validated measurement framework and model for assessing enterprise systems success. A step-by-step guide to information and communication technology (ICT) Business Cases (DAM/VAM).
This primer provides tools, concepts and a framework for addressing a number of critical challenges facing enterprise information technology (IT) organizations.
This paper introduces the Application Investment Management (AIM) Framework for "effective" business application planning i.e. the framework helps align "business value with application spending to achieve immediate IT cost savings and reduce ongoin... This business case framework and approach is designed to improve the outcome of major investments using a structured approach that integrates disciplined decision making with program management and assurance. This approach provides an intuitive proce... This excellent and indepth guide provides insight into the process, technique and templates for business case preparation and evaluation. MUST Read! This guide introduces a two step business case preparation and justification process. Pass One is a high level statement of purpose and benefit. If approved, funding is provided for Pass Two which results in a thorough business case which in turn mus... This guide helps develop a business case for IT investments. It provides a structure for the decision-making process, and for presenting this information in a way that makes decision-making easier, and help secure commitment and engagement across the... This guide is focused on the process more than the content of an investment business case. It provides templates and examples to illustrate the business case preparation and approval process. You will have to sift through some situation specific info... This package contains business case template and other templates supporting the five case business case development toolkit. These templates can be adapted to create business cases for just about any investment. Excellent resource. This report presents the results of Applied Information Economics (AIE) in action in a real life setting - Environmental Protection Agency (EPA) wanted to ascertain the implications of replacing desktops on an accelerated schedule. EPA used AIE to c... This paper discusses the impact of emerging technology and changing user needs on the success of information systems and proposes an extension to the DeLone and McLean IS Success Model. This in-depth guide provides the process, templates, and guidance to create a business case for investments. The excellent discussion goes beyond financial considerations to include critical non-financial issues to consider when funding an investment... This presentation discusses the key building blocks of a business case and the steps needed to assemble them into a meaningful instrument to communicate the value proposition of an initiative. This business case guide provides a template for managers to seek approval and support for IT investments. It provides the steps in the analysis required to ensure that IT investments are planned and documented - requirements are defined, performance... This guide to writing good business cases first discusses what is a good business case and then describes the process for creating one with numerous references to resources for creating business cases. A Guide to developing ICT business cases with comprehensive planning and analysis of the project’s demand, value and costs. ICT Business case guide provides instructions on using the ICT business case template to justify, and monitor it investments. ICT Business case guide (Cost Estimation and Risk Management) provides instructions on using the ICT business case template to justify, and monitor it investments. This IT business case template is part of the Demand and Value Assessment Methodology (DAM/VAM) Methodology. ICT Business case template as an MS Excel spreadsheet that you can use to justify, and monitor it investments. A Template to developing ICT investment business cases with comprehensive planning and analysis of the project’s demand, value, risk and costs. This comprehensive guide provides policy, principles, process, framework, and examples for a complete and thorough management - identify, select, evaluate, fund, deploy, monitor - of major investments. You can adapt this guide to create your own Info... Information Technology Capital Planning and Investment Control (CPIC) Guide provides an in-depth discussion on an Information Technology Investment Management framework.
IT Business case example provides an example of performing a cost benefit analysis to support funding of IT investments.
IT Business case guide provides a primer on performing a cost benefit analysis to support funding of IT investments.
IT Business case template can be used to perform a cost benefit analysis to support funding of IT investments. IT Business case template can be used to perform a cost benefit analysis to support funding of IT investments.
IT Business Case Template with step by step guide you can use to assess value of IT projects - costs, benefits, and risks.
This guide focuses on creating a business case for a generic project peripheral to an IT investment. The guide helps understand what a Business Case is, when and how one should be produced, what should be included, as well as some of the tools and te... This comprehensive, multi-volume guide contains a complete set of tools - framework, process, instructions, templates, and tools - to create a business case for information technology (ICT) investments. This guide contains information, and tools for ... This information technology investment framework provides the key criteria to consider when making decisions about IT investments. An IT investment framework is used to ensure maximum returns on every dollar spent on IT - to get the biggest bang for ... This business case guide can help you create a business case for your IT investments linked with results aka business value.
This business case template provides an outline to create a business case for your IT Investments linked to business value. This package contains a complete guide to information technology project business justification - with detailed guidance on feasibility analysis, economic justification, and special considerations - a template to create a business case, and detailed... Do you want to use EVA to make a business case for IT Spending? Read On... How do they create a business case to manage IT investments in France? How do they measure business value created? MAREVA! This presentation provides an overview to MAREVA - good to get a taste of a good IT Management methodology and framework.
Last week, we lay the foundation for a discussion on IT Value. This week, we look at specific areas where IT creates value. This white paper discusses unit of work model pricing model for application services - identifying, measuring and pricing units of work is described for outsourcing work that can be adapted for an internal IT organization run as a business as well. This document describes the strategic assessment of an IT investment which answers the simple question: "is there a need?" This is perhaps the first stage in an investment's lifecycle and most critical because this is where one can either save the da... Does IT ROI matter? Great many intelligent people are spending sleepless nights and countless dollars calculating IT ROI. The author argues that they are wasting their time and shareholder dollars!
Posted on 11/10/2011 by