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Abstract: A research project has recently been initiated, to establish the characteristics of the organisational
capability required to succeed in realising benefits from IT investments. The aim of this paper is to introduce the
research framework for this study and to present a progress report on the first, exploratory phase of this research,
which sought to establish how explicitly and proactively benefits realisation management was conducted in a
sample of recently completed IT projects. The results of the empirical research suggest that generally
organisations are not adopting explicit benefits realisation programmes, there are, however, some instances
where organisations are beginning to adopt a more proactive benefits orientation.
research to explore how a benefits realisation those that have been distinctly less
programme can best be undertaken. One successful.
potentially interesting line of enquiry is to It was envisaged that the exploratory analysis
establish the characteristics of the [phase 2] would provide some important
organisational capability required to succeed in insights to help understand the validity of the
realising benefits from IT investments. A framework [phase 1], as well as providing a
research project, seeking to address this issue, sharper focus and an important backdrop for
was initiated, which has been broken down conducting the full study [phase 3]. To date,
into the following three major phases: the literature review has been completed, a
1 Framework Development: The objective research model has been developed and the
of the initial phase of the study was to first, exploratory phase of the empirical work
develop a research framework, to guide has been commenced. The aim of this paper is
the study as a whole. The purpose of the to present a progress update on this study by
framework, which was primarily based presenting the literature and research model,
upon a thorough review of the literature, before providing an exploratory analysis of
was to present a high level, 'idealised' how benefits realization has been approached
vision of how benefits realisation should be in a sample of IS projects. The following
applied in practice. section of this paper presents the research
2 Exploratory Analysis: The aim of the framework, an analysis of the results of the
second phase was to conduct an initial exploratory study is presented and
exploratory analysis of the application of discussed in the fourth section, before their
benefits realisation management within a importance is assessed in the final section.
small sample of recently completed IS
development projects. Having collected 2. The research framework
and analysed the data, it was envisaged
that the 'best practice' framework would be The research framework has been derived
used as a mechanism for exploring the primarily from an extensive review of the
extent to which the reality of benefits literature. However, the experiences of one of
realisation match 'best practice'. More the two researchers, who is a very experienced
specifically, it would be possible to gain a IT developer and project manager, greatly
deeper understanding of: helped to shape its final form. To this end the
researcher has kept a research notebook in
a The nature and impact of benefits
which he recorded observations and the
realisation, in cases where its practice
results of document reviews with respect to the
did broadly match the framework.
application of benefits realisation management
b The inhibiting factors and implications, on the projects in which he has been involved.
in cases where the practice of benefits The aim of this section is to firstly describe the
management diverged significantly framework, before contextualising it in the
from the framework. literature.
3 Case Studies: The aim of the third and
final phase of the research is to undertake 2.1 The ‘Best Practice’ framework for
some in-depth case studies of the benefits realisation
treatment of benefits realization in ‘live’
information systems development projects. Figure 1 provides an overview of the research
It is anticipated that for each of these model. In outline the major elements of the
cases, data will be collected using a framework are as follows:
combination of observation, document Technology Delivery / Benefits Realisation
reviews and interviews. Moreover, it is Projects
envisaged that a representative sample The main unit of analysis within the framework
will be chosen to ensure that it includes is the individual IT project, each of which is
organisations that have explicit benefits conceived as having a technology delivery and
realization programmes as well as those a benefits realisation component. As benefits
who have no specific focus on benefits. realisation is the major focus of the research
The aim of this phase of the project is to we have chosen to sub-divide it into a number
gain new insights into the capabilities of distinct phases, namely benefits planning,
necessary to support benefits realization delivery and review. As there has been little
by comparing and contrasting the explicit discussion of these three concepts in
experiences of those organizations that the literature, we start the following discussion
are successful in realizing benefits with of each by presenting a working definition.
1. Benefits Planning: We define benefits
planning as 'the process of identifying and
review has revealed that there has been realisation [shown as the shaded area in figure
relatively little explicit coverage of the content, 2]. The only previous study, to be identified,
process and impact of benefits realisation that explicitly tackles benefits realization, in the
management, and there is, therefore, a context of competencies, concluded that
pressing need for further studies that adopt a organisation’s need to develop competencies
clear benefits’ perspective. It is envisaged that in ‘exploitation planning’ and ‘benefit
the proposed study will also make an important evaluation’ if they are to realise value from
contribution from a capabilities and there IS investments (Peppard et al, 2000).
competencies perspective. As discussed in the Whilst the work of Peppard et al [2001] has
previous section, there are significant played an important role in helping to shape
literatures already in existence that focus upon and position our study, its scope was far
either corporate competencies / capabilities, or broader than ours as it investigated a
the sub-set of this literature that specifically comprehensive range of ‘information
targets the capabilities of the IS / IT function competencies’. By contrast we are aiming to
[see figure 2]. However, the focus of our focus solely upon benefits realization
research forms an important, yet largely capabilities and subject these to far more
neglected, area on the boundary between detailed scrutiny.
these two existing bodies of literature, namely
the capabilities necessary to facilitate benefits
Existing Corporate
Competencies / Capabilities
Literature
Existing IS / IT
Competencies /
Capabilities
Capabilities Literature
for Benefits
Realisation
Whilst the justification for this study is at least 'benefits have to be managed if they are
in part, the relative paucity of literature to be gathered''.
explicitly addressing the topic of benefits Evaluation should also be concerned with
realisation there are many contributions, from assessing the process of systems
related bodies of literature, particularly IT development, as well its product. Palvia et
evaluation, that are directly related to our al [2001] and Remenyi & Sherwood-Smith
study. For example, the following [1999] argue that the experiences of
contemporary views of the nature and role of systems development process should be
IT evaluation suggest that it has much in explicitly evaluated, so that they can be
common with benefits realisation: improved over time.
Evaluation should be explicitly concerned
Whilst the traditional view has conceived
with the on-going management and
evaluation to be an activity that it is
direction of the project, and in so doing
undertaken in two distinct 'acts' [Remenyi
the realisation of information systems'
et al, 1997; p 72], there is a growing
value [Palvia et al, 2001; Remenyi &
consensus that evaluation should be
Sherwood-Smith, 1999]. As Farbey et al
performed as an on-going process. As
[1993] note, with respect to IT evaluation,
Remenyi and Sherwood-Smith [1999; p value / reusability, on the day of selection (22 /
18] note: 'to obtain most benefit from April / 2003). The rankings are provided by the
information system evaluation it is consultants (users of the repository) and the
important to conduct evaluations regularly subject matter experts who manage content in
as an integral part of the systems key areas of the repository. The chosen
development life-cycle'. projects provide a broad coverage across
The socio-technical literature, which is sectors and around the world from major
concerned with the human and organisational organisations. It is also worth noting that none
aspects of systems development projects, also of the chosen projects were fully outsourced
addresses many of the same issues as the developments, as each involved working in
benefits realisation literature. For example, a joint team with client staff.
recent definition of organisational issues:
‘those issues which need to be treated during A set of questions was developed based on
the systems development process to ensure the research framework. The questions were
that individual human, wider social and conceived from the standpoint that an IT
economic impacts of the resultant computer- project is an exercise in socio-technical change
based information systems are likely to be with the objective of delivering benefits to the
desirable’ [Doherty & King, 2001], highlights organisation and organisational stakeholders.
the degree of overlap. The process of explicitly The sample being studied comprises individual
addressing organisational impacts is likely to projects so the focus of the review is at the
help ensure that benefits are proactively project level rather than programme or portfolio
managed and ultimately realised. perspectives. The questions were focussed on
Consequently, whilst the literature on benefits three distinct aspects of benefits realisation
realisation might be fairly modest at present, management, namely: benefits planning;
there are plenty of contributions from the benefits delivery and benefits review. For each
evaluation and socio-technical literature that of the 16 projects selected the full set of
have strongly influenced our thinking with documents stored in the knowledge base was
respect to the research framework. Indeed, it is downloaded. For each project the documents
possible to suggest that the IT evaluation, were reviewed in two stages:
social-technical approaches and benefits An initial review of all the documents was
realisation literatures should be viewed as carried out to highlight areas where the
alternative windows onto a similar set of ‘best practice model’ had, or had not,
concerns. been followed.
A second review of the documentation
3. The initial exploratory study was then carried out with the purpose of
responding to the specific questions that
The aim of this section of the paper is to had been developed.
describe the research approach applied during
Following the project by project review findings
this phase, before summarizing the results of
were summarised in a number of different
the exploratory study. It should be noted, that
ways. The analysis of the findings presented in
as we are currently extending the size of the
section 4 concentrates on an analysis of the
sample, this paper represents a progress
common themes relating to each specific
report, rather than the finished product.
question. In essence, this approach can be
characterised as a variable oriented, cross-
3.1 Research approach case analysis [Miles & Huberman, 1994].
Access was gained to the knowledge
management system of a large software 3.2 Research findings
company, with extensive IT consultancy
The aim of this section of the paper is to
experience. The knowledge-base contains
present a very summarized review of the
detailed records of the vast majority of the
results of the exploratory, empirical analysis.
projects in which the organisation's consulting
This analysis focuses primarily on the three
arm played a significant role in the
component parts of benefits realisation,
development and implementation of IT
namely planning, delivery, and review and this
solutions on behalf of, or in collaboration with,
section is therefore structured accordingly.
commercial clients. Ultimately, a sample of
sixteen project histories was chosen for
inclusion in the initial exploratory analysis 3.2.1 Benefits planning
described in this paper. The projects were The analysis of the responses to individual
chosen as they were the most highly ranked questions addressed, with respect to benefits
projects in the knowledge base, on basis of planning, indicates that the projects were
in benefits planning, delivery and review. The and Wenn, A. (eds), Information
study also has important implications for the Science Publishing, Hershley, PA, pp
researcher, as it highlights the worrying gap 22-40.
between the theory and practice of benefits Eason, K., (1988), Information Technology and
realisation. The results of the literature review Organisational Change, Taylor &
are also important as they highlight the high Francis, London.
degree of commonality between the IT Ewusi-Mensah, K. & Przasnyski, Z. (1994)
evaluation, socio-technical approaches and “Factors Contributing to the
benefits realisation management literatures. Abandonment of Information Systems
Consequently, it is important for researchers to Development Projects”, Journal of
consult all three literatures when investigating Information Technology, 9, pp 185-
the organizational impacts of, and change 201.
requirements for, information system’s Farbey, B., Land, F. & Target, D. (1993) How
projects. to assess your IT investment,
Butterworth-Heinemann, Oxford.
The conduct of exploratory study has identified Feeney, D. and Willcocks, L. (1998a) “Core
a number of significant weaknesses in our Capabilities for Exploiting Information
research approach. In particular, it has been Technology”, Sloan Management
difficult to draw many inferences, from the Review, Spring, 39 (3)
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organisational capabilities, the organisational designing the IS function around core
learning, or indeed the degree to which capabilities”, Long Range Planning, 31
individual projects were successful in terms of (3).
benefits realization. We are, therefore, Hamel, G. & Prahalad, C. K. (1993) “Strategy
currently in the process of arranging interviews as Stretch and Leverage”, Harvard
with project managers from each of the 16 Business Review, 71 (2), pp 75-84.
projects to investigate these important areas in Miles, M. B., and Huberman, A. M. (1994)
more detail. Moreover, we are planning to Qualitative Data Analysis, Sage
extend the scope of the initial exploratory study Publications: Thousand Oaks,
by significantly increasing the sample size. On California.
completion of the initial exploratory study, it is Murray P et al (2001), Advanced Benefits
envisaged that the ‘best practice’ framework Management, Cranfield ISRC research
will be refined before commencing the in-depth report, 2001
case studies. Peppard, J., Lambert, R. and Edwards, C.
(2000) “Whose job is it anyway?:
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