Measuring and Managing the Benefits from IT Projects: A Review and Research Agenda

  • Crispin R. Coombs
  • Neil F. Doherty
  • Irina Neaga
Chapter

Abstract

There is growing agreement that organisations must explicitly plan for and proactively manage the realisation of benefits, if a new technology is to deliver real value to its host organisation. In particular, benefits need to be leveraged through carefully planned and co-ordinated programmes of organisational change and ongoing organisational adaptation. Inevitably these insights have encouraged academics, consultants and practitioners to develop tools and techniques that explicitly support the benefits realisation process. Unfortunately, even when organisations have adopted such prescriptions, tools or panaceas, the outcome from software projects still often disappoints users and managers alike. Based upon a thorough review of the existing literature, we begin by critically evaluating the benefits management literature and argue that before organisations can meaningfully manage benefits, they must be able to effectively measure benefits. We then critique the existing benefits measurement literature to assess whether the current measurement tools are sufficiently robust and effective, to facilitate benefits management approaches. The chapter concludes by proposing an agenda that identifies the many areas in which future research projects could be fruitfully conducted.

References

  1. Anthony RN (1965) Planning and control systems: a framework for analysis. Harvard University, Boston, MAGoogle Scholar
  2. Argyropoulou M, Ioannou G, Koufopoulos DN, Motwani J (2009) Measuring the impact of an ERP project at SMEs: a framework and empirical investigation. Int J Enterprise Inform Syst 5(3):1–13CrossRefGoogle Scholar
  3. Ashurst C, Doherty NF, Peppard J (2008) Improving the impact of IT development projects: the benefits realization capability model. Eur J Inform Syst 17(4):352–370CrossRefGoogle Scholar
  4. Barua CHK, Mukhopadhyay T (1995) Information technologies and business value - an analytic and empirical-investigation. Inform Syst Res 6(1):3–23CrossRefGoogle Scholar
  5. Benaroch M, Kauffman RJ (1999) A case for using real options pricing analysis to evaluate information technology project investments. Inform Syst Res 10(1):70–86CrossRefGoogle Scholar
  6. Berghout E, Nijland M, Powell P (2011) Management of lifecycle costs and benefits: lessons from information systems practice. Comp Indus 62(7):755–764CrossRefGoogle Scholar
  7. Bradley G (2006) Benefit realisation management. Gower, LondonGoogle Scholar
  8. Bresnahan TF, Brynjolfsson E, Hitt LM (2002) Information technology, workplace organization, and the demand for skilled labor: firm-level evidence. J Econ 117(1):339–376Google Scholar
  9. Brynjolfsson E, Hitt LM (1998) Beyond the productivity paradox. Commun ACM 41(8):49–55CrossRefGoogle Scholar
  10. Brynjolfsson E, Hitt LM (2000) Beyond computation: Information technology, organizational transformation and business performance. J Econ Perspect 23–48Google Scholar
  11. Buccoliero L, Calciolari S, Marsilio M (2008) A methodological and operative framework for the evaluation of an e-health project. Int J Health Planning Manag 23(1):3–20CrossRefGoogle Scholar
  12. Changchit C, Joshi KD, Lederer AL (1998) Process and reality in information systems benefit analysis. Inform Syst J 8(2):145–162CrossRefGoogle Scholar
  13. Doherty NF, Ashurst C, Peppard J (2012) Factors affecting the successful realisation of benefits from systems development projects: findings from three case studies. J Inform Technol 27(1):1–16CrossRefGoogle Scholar
  14. Farbey B, Land F, Targett D (1993) How to assess your IT investment: a study of methods and practice. Butterworth-Heinemann, OxfordGoogle Scholar
  15. Fox S (2008) Evaluating potential investments in new technologies: Balancing assessments of potential benefits with assessments of potential disbenefits, reliability and utilization. Critic Perspect Account 19(8):1197–1218CrossRefGoogle Scholar
  16. Gacenga F, Cater-Steel A, Toleman M (2010) An International analysis of IT service management benefits and performance measurement. J Glob Informat Technol Manag 13(4):28–63Google Scholar
  17. Giaglis GM, Mylonopoulos N, Doukidis GI (1999) The ISSUE methodology for quantifying benefits from information systems. Logistics Inform Manag 12(1/2):50–62CrossRefGoogle Scholar
  18. Gorla N, Somers TM, Wong B (2010) Organizational impact of system quality, information quality, and service quality. J Strat Inform Syst 19(3):207–228CrossRefGoogle Scholar
  19. Gregor S, Martin M, Fernandez W, Stern S, Vitale M (2006) The transformational dimension in the realization of business value from information technology. J Strat Inform Syst 15(3):249–270CrossRefGoogle Scholar
  20. Hitt LM, Wu DJ, Zhou XG (2002) Investment in enterprise resource planning: business impact and productivity measures. J Manag Inform Syst 19(1):71–98CrossRefGoogle Scholar
  21. Jeffers PI, Muhanna WA, Nault BR (2008) Information technology and process performance: an empirical investigation of the interaction between IT and Non-IT resources. Dec Sci 39(4):703–735CrossRefGoogle Scholar
  22. Klein G, Jiang JJ, Balloun J (1997) Information system evaluation by system typology. J Syst Software 37(3):181–186CrossRefGoogle Scholar
  23. Kleist VF (2003) An approach to evaluating E-business information systems projects. Inform Syst Front 5(3):249–263CrossRefGoogle Scholar
  24. Lin WT (2009) The business value of information technology as measured by technical efficiency: evidence from country-level data. Dec Support Syst 46(4):865–875CrossRefGoogle Scholar
  25. Lin WT, Chuang CH, Choi JH (2010) A partial adjustment approach to evaluating and measuring the business value of information technology. Int J Prod Econ 127(1):158–172CrossRefGoogle Scholar
  26. Love PED, Irani Z, Standing C, Lin C, Burn JM (2005) The enigma of evaluation: benefits, costs and risks of IT in Australian small-medium-sized enterprises. Inform Manag 42(7):947–964CrossRefGoogle Scholar
  27. Marchand D, Peppard J (2008) Designed to fail: why IT projects underachieve and what to do about it. IMD Int, 11 p 30Google Scholar
  28. Martin-Oliver A, Salas-Fumas V (2012) IT assets, organization capital and market power: contributions to business value. Dec Support Syst 52(3):612–624CrossRefGoogle Scholar
  29. Mintzberg H (1983) Structures in fives. Designing Effective Organizations, Prentice-HallGoogle Scholar
  30. Mirani R, Lederer AL (1998) An instrument for assessing the organizational benefits of IS projects. Dec Sci 29(4):803–838CrossRefGoogle Scholar
  31. Mukhopadhyay T, Kekre S (2002) Strategic and operational benefits of electronic integration in B2B procurement processes. Manag Sci 48(10):1301–1314CrossRefGoogle Scholar
  32. Murphy KE, Simon SJ (2002) Intangible benefits valuation in ERP projects. Inform Syst J 12(4):301–320CrossRefGoogle Scholar
  33. Nevo S, Wade MR (2010) The formation and value of it-enabled resources: antecedents and consequences of synergistic relationships. MIS Quart 34(1):163–183Google Scholar
  34. Petter S, DeLone W, McLean ER (2012) The past, present, and future of IS success. J Assoc Inform Syst 13(5):2Google Scholar
  35. Powell TC, Dent-Micallef A (1997) Information technology as competitive advantage: the role of human, business, and technology resources. Strat Manag J 18(5):375–405CrossRefGoogle Scholar
  36. Ray G, Barney JB, Muhanna WA (2004) Capabilities, business processes, and competitive advantage: choosing the dependent variable in empirical tests of the resource‐based view. Strat Manag J 25(1):23–37CrossRefGoogle Scholar
  37. Rehesaar H, Mead A (2005) An extension of benefit cost analysis to IS/IT investments. Bus Rev Cambridge 4(1):89–93Google Scholar
  38. Remenyi D, Twite A, Money A (1993) Guide to measuring and managing IT benefits. Blackwell Publishers, New York, NYGoogle Scholar
  39. Remenyi D, White T, Sherwood-Smith M (1997) Achieving maximum value from information systems: a process approach. Wiley, New York, NYGoogle Scholar
  40. Sanchez H, Robert B (2010) Measuring portfolio strategic performance using key performance indicators. Project Manag J 41(5):64–73CrossRefGoogle Scholar
  41. Shang S, Seddon PB (2002) Assessing and managing the benefits of enterprise systems: the business manager’s perspective. Inform Syst J 12(4):271–299CrossRefGoogle Scholar
  42. Sharif AM, Irani Z (2006) Exploring fuzzy cognitive mapping for IS evaluation. Eur J Operat Res 173(3):1175–1188CrossRefGoogle Scholar
  43. Skok W, Kophamel A, Richardson I (2001) Diagnosing information systems success: importance-performance maps in the health club industry. Inform Manag 38(7):409–419CrossRefGoogle Scholar
  44. Smith HA, McKeen JD (1993) How does information technology affect business value - a reassessment and research propositions. Revue Canadienne Des Sciences De L Administration-Can J Admin Sci 10(3):229–240CrossRefGoogle Scholar
  45. Tallon PP, Kraemer KL (2007) Fact or fiction? A sense making perspective on the reality behind executives’ perceptions of IT business value. J Manag Inform Syst 24(1):13–54CrossRefGoogle Scholar
  46. Thorp J (1998) The information paradox - realising the business benefits of information technology. McGraw-Hill, TorontoGoogle Scholar
  47. Ward JL, Daniel E (2006) Benefits management: delivering value from IS and IT investments. Wiley, New York, NYGoogle Scholar
  48. Ward J, Elvin R (1999) A new framework for managing IT-enabled business change. Inform Syst J 9(3):197–221CrossRefGoogle Scholar
  49. Williams D, Parr T (2006) Enterprise programme management: delivering value. Macmillan, PalgraveGoogle Scholar
  50. Yu JH, Lee HS, Kim W (2006) Evaluation model for information systems benefits in construction management processes. J Construct Eng Manag 132(10):1114–1121CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  • Crispin R. Coombs
    • 1
  • Neil F. Doherty
    • 1
  • Irina Neaga
    • 2
  1. 1.Centre for Information Management, Loughborough UniversityLeicestershireUK
  2. 2.Faculty of Business, Plymouth UniversityPlymouthDevon

Personalised recommendations