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1. BENEFITS
MANAGEMENT
USE OF IT
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2. Benefits Management
Benefits
Management
• Benefits management
can be described as: “The
process of organizing and
managing such that
potential benefits arising
from the use of IT are
actually realized’ (Ward &
Daniel, 2006; pp 324)

3. Different benefits
management approaches
Benefits
Management
• Roles and responsibilities
Benefits
Management
• Process and activities
Benefits
Management
• Characteristics

4. Active Benefits
Realization(ABR)
Benefits
Management
• The approach rests on the
notion that the ABR project
management process is
based on the principles of
formative or continuous
participative evaluation for
information systems (IS).

5. Benefits Management
Benefits
Management
• Since the ABR process is based on active
participation, the roles and responsibilities
must be clearly stated.
Benefits
Management
• A benefits realization program needs to
be participative and for that, the role of
participants must be agreed.
Benefits
Management
• One of the critical success factors for the
ABR process is that all the principle
stakeholders must be correctly identified.

6. Benefits Management
The selected stakeholders should not only
be committed to an environment of
learning and understanding but also they
have to have time for continuously
involvement and participation in the
project.
The purpose of involving
various groups of stakeholders
has several objectives.

7. Benefits Management
A better understanding is
achieved through the
learning process which
enhances the competence
of the participations.

8. Staff involvement
Management
team and end
users
Group 1
Information
systems team
Group 3
Account
Department
Group 2
Active Benefits
Realization(ABR)

9. Responsibilities
Group 1
• Responsible
to make sure
that the
system will
succeed
Group 2
• Responsible
for control all
resources in
terms of
corporate
policy
Group 3
• Responsible
for bringing
technical
expertise to
information
systems
development
for better
management
of project

10. The process
ABR is a project management process
for managing information systems
development.
It is based around the idea of
continuous evaluation, active
participation of the primary
stakeholders including line managers
and end users and a direct focus on
benefits realization.

11. stakeholder’s involvement
Will eliminate any
surprises‘ (time-cost)
as the project reaches
it’s final stages.

12. The process consists of seven
major activities
Initialization
of project
production
of pictures
Agreement
to continue
System
development

13. Benefits Management
Evidence
collection
Review and
learning
Development
of updated
pictures

15. Benefits Management
 Benefits Management duty is to make sure
that desired business change or policy
outcomes have been clearly defined, are
measurable, and provide a compelling
case for investment – and ultimately to
ensure that the change or policy outcomes
are completely achieved.
 Next table-OGC Benefits Management - Roles and
responsibilities (OGC, 2008)

16. People involved Role and responsibilities
SRO – senior responsible
owner
Owns the Benefits Management Strategy
and is responsible for Benefits Realization
Plan
Program Manager Oversees / prepares the Benefits
Realization Plan and ensures it is
aligned with Program Plan and
Business Case
Program Office Responsible for tracking and progress-
chasing benefits, calling reviews and
communicating results
Business Change Manager Realizing benefits; Agreeing profile,
impact analysis, quantifying, risk
assessment
Project Manager Defining benefits in PID(project
initiation document), for achieving
main objectives(time, quality and costs
Assurance/validation Usually carried out by third party
individuals not directly involved in the
Business Change Program

17. Benefits Management process (OGC, 2008)

18. The benefits management
strategy
Benefits
Management
• It describes a structured and continuous process
to ensure that benefits are sustained and returns
on investments are maximized.
Benefits
Management
• A set of questions need to be answered such as:
• what are top-level (strategic) benefits and are
there any dis-benefits?
• What are the main roles and responsibilities?

19. The benefits management
strategy
Benefits
Management
• Who else is a stakeholder and
therefore need to be involved in
agreeing and communicating
benefits?
Benefits
Management
• What are the sequences and
dependencies between benefits?
How will all benefits be tracked and
measured?

20. The benefits realization plan
Benefits
Management
• It should be developed as a
product in its own right and may be
incorporated within each iterated
version of the business case.
Benefits
Management
• This process involves:

21. Benefits Management
 identifying and prioritizing tangible
and intangible benefits
 generating ownership of and
commitment to the benefits from
business stakeholders
 developing measures and quantifying
benefit opportunities
 implementing an on-going benefits
tracking and reporting process etc.

22. Benefits Management
Realizing and tracking
benefits and reviewing
Identifying and prioritizing benefits
Optimizing the mix of benefits

23. Information and Communication
Technology (ICT)
Life cycle of ICT
investments for added value
The life cycle of ICT investments is based on
Swinkels (1999).
The approach rests on the notion that for
successful application of IC needs good decision
making and managerial processes.

24. The process

25. Benefits Management
Identification - Application systems
that might have a positive effect on
performance of the organization
all must be identified.
Justification - Investment proposals
are then elaborated and judged to
determine if they meet the pre-set
criteria.

26. Benefits Management
Realization - The selected
investment proposals are then
realized and implemented.
In the event of constraint such as limited
budget, the investment proposals are
compared to other ICT investment proposals,
in order to determine priorities.

27. Benefits Management
Benefits
Management
• Exploitation - This realization and
implementation must be done in
order to support business
processes.
Benefits
Management
• Evaluation - The performance of
the information system and the
process involved should be
evaluated.

28. Characteristics
The main factors
in this life cycle
are:
•Benefits
•Burdens and
•Uncertainty