Benefits Management Enhances the Organizational Competitive Advantage

Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 275)

Abstract

To gain competitive advantage organizations need to have something that the competitors do not have and cannot achieve in the short-term. In the past organizations invested large amounts of financial resources to the finest equipment to increase competitiveness. Today, the paradigm has changed and so the quest is more knowledge and innovation driven, where the answer relies on the people’s capacity to create and modify processes and generate business value. The investments in information systems and technology (IS/IT) have not always generated the business value or the financial revenue that should be expected. Benefits management focuses on how business areas will improve from business changes and provides a framework for identifying, planning, monitoring, evaluating and actively managing these benefits. In this paper, the authors show how benefits management reinforces firms to identify more clearly the path to obtain the strategic objectives and the related benefits promoting the organizational competitive advantage.

Keywords

The Five Competitive Forces Resource Based-View Competitive Advantage Benefits Management 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Barney, J., Arikan, A.: The resource-based view: Origins and implications. Handbook of Strategic Management (2001) (forthcoming)Google Scholar
  2. 2.
    DeNisi, A.S., Hitt, M.A., Jackson, S.E.: The Knowledge Based Approach to Sustainable Competitive Advantage. Oxford University Press, New York (2003)Google Scholar
  3. 3.
    Ansoff, H.I.: Implanting strategic management. Prentice-Hall International, Englewood Cliffs (1984)Google Scholar
  4. 4.
    Porter, M.E.: Competitive strategy – Techniques for analyzing industries and competitors. The Free Press, New York (1980)Google Scholar
  5. 5.
    Porter, M.E.: Competitive advantage. Free Press, New York (1985)Google Scholar
  6. 6.
    Rumelt, R.P.: How much does industry matter? Strategic Management Journal 12(3), 167–185 (1991)CrossRefGoogle Scholar
  7. 7.
    Caves, R.E., Williamson, P.J.: What is Product Differentiation, Really? Journal of Industrial Economics 34(2), 113–132 (1985)CrossRefGoogle Scholar
  8. 8.
    Kogut, B.: Joint Ventures: Theoretical and Empirical Perspectives. Strategic Management Journal 9, 319–332 (1988)CrossRefGoogle Scholar
  9. 9.
    Barney, J.: Firm resources and sustained competitive advantage. Journal of Management 17(1), 99–120 (1991)CrossRefGoogle Scholar
  10. 10.
    Clemons, E.K.: Information systems for sustainable competitive advantage. Information & Management 10(11), 131–136 (1986)CrossRefGoogle Scholar
  11. 11.
    Clemons, E.K.: Evaluation of strategic investments in information technology. Communications of the ACM 34(1), 23–36 (1991)CrossRefGoogle Scholar
  12. 12.
    Clemons, E.K., Kimbrough, S.O.: Information Systems, Telecommunications, and their Effects on Industrial Organization. In: Proceedings of the Seventh International Conference on Information Systems, pp. 99–108 (1986)Google Scholar
  13. 13.
    Clemons, E.K., Row, M.: Structural Differences among Firms: A Potential Source of Competitive Advantage in the Application of Information Technology. In: Proceedings of the Eight International Conference on Information Systems, pp. 1–9 (1987)Google Scholar
  14. 14.
    Clemons, E.K., Row, M.C.: Sustaining IT Advantage: The Role of Structural Differences. MIS Quarterly 15(3), 275–292 (1991)CrossRefGoogle Scholar
  15. 15.
    Grant, R.M.: Toward a knowledge-based theory of the firm. Strategic Management Journal 17, 109–122 (1996a)CrossRefGoogle Scholar
  16. 16.
    Wernerfelt, B.: A resource-based view of the firm. Strategic Management Journal 5(2), 171–180 (1984)CrossRefGoogle Scholar
  17. 17.
    Strassmann, P.A.: The Business Value of Computers. The Information Economics Press (1990)Google Scholar
  18. 18.
    Willcocks, L., Lester, S.: Beyond the IT productivity paradox. European Management Journal 14(3), 279–290 (1996)CrossRefGoogle Scholar
  19. 19.
    Hochstrasser, B.: Quality Engineering: A New Framework Applied to Justifying and Prioritizing It Investment. European Journal of Information Systems 2(3), 211–223 (1993)CrossRefGoogle Scholar
  20. 20.
    Thorp, J.: A benefits realization approach to IT investments. In: Grembergen (ed.) Information Technology Evaluation Methods & Management, pp. 22–43. Idea Group Publising (2001)Google Scholar
  21. 21.
    D’Aveni, R.A.: Coping with hyper competition: Utilizing the new 7S’s framework. Academy of Management Executive 9(3), 45–60 (1995)Google Scholar
  22. 22.
    Eisenhardt, K., Martin, J.: Dynamic capability: What are they? Strategic Management Journal 21, 1105–1121 (2000)CrossRefGoogle Scholar
  23. 23.
    Teece, D.J., Pisano, G., Shuen, A.: Dynamic capabilities and strategic management. Strategic Management Journal 18, 509–533 (1997)CrossRefGoogle Scholar
  24. 24.
    Teece, D.J., Pisano, G.: Dynamic Capabilities of Firms: An Introduction. Industrial and Corporate Change 3(3), 537–556 (1994)CrossRefGoogle Scholar
  25. 25.
    Prahalad, C.K., Hamel, G.: The Core Competence of the Corporation. Harvard Business Review 68(3), 79–91 (1990)Google Scholar
  26. 26.
    Porter, M.E.: The Competitive Advantage of Nations. Free Press, New York (1991)Google Scholar
  27. 27.
    Porter, M.E.: Towards a Dynamic Theory of Strategy. Strategic Management Journal 12(winter special issue), 95–118 (1992)Google Scholar
  28. 28.
    Amit, R., Schoemaker, P.J.H.: Strategic assets and organizational rent. Strategic Management Journal 14(1), 33–46 (1993)CrossRefGoogle Scholar
  29. 29.
    Bain, J.S.: Industrial Organization. Wiley, New York (1959)Google Scholar
  30. 30.
    Kay, J.A.: Foundations of Corporate Success. Oxford University Press (1993)Google Scholar
  31. 31.
    Klein, N.: No Logo. Flamingo, London (2001)Google Scholar
  32. 32.
    Johnson, G., Scholes, K.: Exploring Corporate Strategy, 5th edn. Prentice Hall Europe, Hemel Hempstead (1999)Google Scholar
  33. 33.
    Hitt, M.A., Ireland, D.R., Hoskisson, R.E.: Administração Estratégica. Bookman, São Paulo (2003)Google Scholar
  34. 34.
    Hoskisson, R.E., Hitt, M.A., Wan, W.P., Yiu, D.: Theory and research in strategic management: Swings of a pendulum. Journal of Management 25(3), 417–456 (1999)CrossRefGoogle Scholar
  35. 35.
    Penrose, E.: The Theory of the Growth of the Firm. Oxford University Press, Oxford (1959)Google Scholar
  36. 36.
    Barney, J., Hansen, M.H.: Trustworthiness as a Source of Competitive Advantage. Strategic Management Journal 15, 175–190 (1994)CrossRefGoogle Scholar
  37. 37.
    Barney, J.: Gaining and Sustaining Competitive Advantage, 2nd edn. Addison-Wesley, Reading (2002)Google Scholar
  38. 38.
    Hamel, G., Prahalad, C.K.: Competing for the Future. Harvard Business School (1994)Google Scholar
  39. 39.
    Helfat, C.E., Peteraf, M.A.: The Dynamic Resource-Based View: Capability Lifecycles Dynamic Capabilities Deconstructed Dynamic Capabilities Deconstructed Dynamic Capabilities Deconstructed. Strategic Management Journal 24(10), 997–1010 (2003)CrossRefGoogle Scholar
  40. 40.
    Grant, R.M.: Prospering in dynamically-competitive environments: Organizational capability as knowledge integration. Organization Science 7(4), 375–387 (1996b)CrossRefGoogle Scholar
  41. 41.
    Rumelt, R.P.: What in the world is competitive advantage? Working paper. The Anderson School, UCLA (2003)Google Scholar
  42. 42.
    Rumelt, R.P.: Towards a strategic theory of the firm. In: Lamb, R.B. (ed.) Competitive Strategic Management. Prentice Hall, Englewood Cliffs (1984)Google Scholar
  43. 43.
    Barney, J.: Organizational Culture: Can it be a source of sustained competitive advantage? Academy of Management Review 11(3), 656–665 (1986)CrossRefGoogle Scholar
  44. 44.
    Mahoney, J.T., Pandian, J.R.: The resource-based view within the conversation of strategic management. Strategic Management Journal 13(5), 363–380 (1992)CrossRefGoogle Scholar
  45. 45.
    Dierickx, I., Cool, K.: Asset Stock Accumulation and Sustainability of Competitive Advantage. Management Science 35(12) (1989)Google Scholar
  46. 46.
    Peteraf, M.A.: The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal 14, 179–192 (1993)CrossRefGoogle Scholar
  47. 47.
    Priem, R.L., Butler, J.E.: Tautology in Resource-Based View and the Implications of External Determined Resource Value: Further Comments. Academy of Management Review 26, 57–66 (2001a)Google Scholar
  48. 48.
    Connor, T.: The Resource-Based View of Strategy and Its Value to Practicing Managers. Strategic Change 11, 307–316 (2002)CrossRefGoogle Scholar
  49. 49.
    Miller, D.: An Asymmetry-Based View of Advantage: Towards an Attainable Sustainability. Strategic Management Journal 24, 961–976 (2003)CrossRefGoogle Scholar
  50. 50.
    Collis, D.J.: Research Note: How Valuable Are Organizational Capabilities? Strategic Management Journal 15, 143–152 (1994)CrossRefGoogle Scholar
  51. 51.
    Gibbert, M.: Generalizing About Uniqueness: An Essay on an Apparent Paradox in the Resource-Based View. Journal of Management Inquiry 15, 124–134 (2006a)CrossRefGoogle Scholar
  52. 52.
    Gibbert, M.: Munchausen, Black Swans, and the RBV: Response to Levitas and Ndofor. Journal of Management Inquiry 15, 145–151 (2006b)CrossRefGoogle Scholar
  53. 53.
    Conner, K.R.: A Historical Comparison of Resource-Based Theory and Five Schools of Thought Within Industrial Organizations Economics: Do We Have a New Theory of the Firm? Journal of Management 17, 121–154 (1991)CrossRefGoogle Scholar
  54. 54.
    Kogut, B., Zander, U.: Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science 3(3), 383–397 (1992)CrossRefGoogle Scholar
  55. 55.
    Lockett, A., Thompson, S., Morgenstern, U.: The Development of the Resource-Based View of the Firm: A Critical Appraisal. International Journal of Management Review 11, 9–28 (2009)CrossRefGoogle Scholar
  56. 56.
    Priem, R.L., Butler, J.E.: Is the Resource-Based “View” a Useful Perspective for Strategic Management Research? Academy of Management Review 26, 22–40 (2001b)CrossRefGoogle Scholar
  57. 57.
    McFarlan, W.: Information Technology changes the way you compete. Harvard Business Review, 93–103 (May-June 1984)Google Scholar
  58. 58.
    Farbey, B., Land, F., Targett, D.: It investment: A study of methods and practice. Butterworth-Heinemann, Oxford (1993)Google Scholar
  59. 59.
    Porter, M.E.: Strategy and the internet. Harvard Business Review, 63–78 (March 2001)Google Scholar
  60. 60.
    Melville, N., Kraemer, K., Gurbaxani, V.: Information technology and organizational performance: An integrative model of IT business value. MIS Quarterly 28(2), 283–322 (2004)Google Scholar
  61. 61.
    Carr, N.G.: It doesn’t matter. Harvard Business Review 81(5), 41–49 (2003)Google Scholar
  62. 62.
    Farrell, D.: The real new economy. Harvard Business Review 81(9), 105–112 (2003)Google Scholar
  63. 63.
    Soh, C., Markus, M.L.: How IT creates business value: a process theory synthesis. In: Proceedings of the Sixteenth International Conference on Information Systems, Amsterdam, The Netherlands, pp. 29–41 (December 1995)Google Scholar
  64. 64.
    Ward, J.M., Taylor, P., Bond, P.: Evaluation and realization of IS/IT benefits: An empirical study of current practice. European Journal of Information Systems 4, 214–225 (1996)CrossRefGoogle Scholar
  65. 65.
    Pettigrew, A., Whipp, R.: Managing change for competitive success. Blackwell Publishers, Oxford (1991)Google Scholar
  66. 66.
    Ward, J., Peppard, J.: Strategic Planning for Information Systems, 3rd edn. Wiley and Sons, Chischester (2002)Google Scholar
  67. 67.
    Ward, J., Daniel, E.: Benefits Management, Delivering Value from IS and IT Investments. John Wiley & Sons, Chichester (2006)Google Scholar
  68. 68.
    Peppard, P., Ward, J., Daniel, E.: Managing the Realization of Business Benefits from IT Investments. MIS Quarterly Executive (March 2007)Google Scholar
  69. 69.
    Ward, J., Elvin, R.: A new framework for managing IT-enabled business change. Information Systems Journal 9, 197–221 (1999)CrossRefGoogle Scholar
  70. 70.
    Ashurst, C., Doherty, N.F.: Towards the formulation of “a best practice” framework for benefits realization in IT projects. Electronic Journal of Information Systems Evaluation 6, 1–10 (2003)Google Scholar
  71. 71.
    Lin, C., Pervan, G.: The practice of IS/IT benefits management in large Australian organizations. Information & Management 41, 31–44 (2003)CrossRefGoogle Scholar
  72. 72.
    Markus, M.L.: Techno change management: using IT to drive organizational change. Journal of Information Technology 19, 4–20 (2004)CrossRefGoogle Scholar
  73. 73.
    Remenyi, D., Money, A., Bannister, F.: The Effective Measurement and Management of ICT Costs and Benefits. CIMA Publishing, Burlington (2007)Google Scholar
  74. 74.
    Bennington, P., Baccarini, D.: Project benefits management in IT projects – An Australian perspective. Project Management Journal (June 2004)Google Scholar
  75. 75.
    Sakar, P., Widestach, C.: Benefits Management – How to realize the benefits of IS/IT investments. Master Thesis in Business Technology, IT University Göteborg, Sweden (2005)Google Scholar
  76. 76.
    Reiss, G., Anthony, M., Chapman, J., Leigh, G., Pyne, A., Rayner, P.: Gower Handbook of programme management. Gower Publishing (2006)Google Scholar
  77. 77.
    Grant, R.M.: Contemporary Strategy Analysis: Concepts, Techniques, Applications, 4th edn. Blackwell Publishers, Oxford (2002)Google Scholar
  78. 78.
    Peteraf, M.A., Barney, J.B.: Unraveling the resource-based tangle. Managerial and Decisions Economics 24(4), 309–323 (2003)CrossRefGoogle Scholar
  79. 79.
    Spanos, Y., Lioukas, S.: An examination into the causal logic of rent generation: Contrasting Porter´s competitive strategy framework and the Resource-based perspective. Strategic Management Journal 22(10), 907–934 (2001)CrossRefGoogle Scholar
  80. 80.
    Foss, N.: Research in Strategy, Economics and Michael Porter. Journal of Management Studies 33(1), 1–24Google Scholar

Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  1. 1.ISEGLisboaPortugal

Personalised recommendations