Information Technology Evaluation Methods and Management by Wim Van Grembergen

By Wim Van Grembergen

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Journal of Information Technology, 6, 39­44. Page 25 Chapter II A Benefits Realization Approach to IT Investments.  The potential long­term impact of information technology represents an economic and social transition as fundamental as the shift from rural agriculture to urban industry 200 years ago, during the first Industrial Revolution.  It is hard to demonstrate how investments in IT, or in producing information translate into economic value.  More recent studies confirm that project failures are continuing to occur at a similar rate, and this applies to more recent ERP, e­Commerce, Supply Chain Management and Customer Relationship Management projects as well as more traditional projects.

Benefits management plans encourage the business users to focus on exactly how they will make the system pay off and contribute to the business objectives. " The following diagram (Figure 7) illustrates the relationship between IS/IT evaluation and IS/IT benefit management.  The process model school, on the other hand, argues that success follows from adhering to an appropriate procedure. Process Model of Benefits Management Without an effective benefits management process, IS/IT benefits will be within the organisation leaving the investing organisation as a whole without satisfactory payoff.

Journal of Information Technology, 5, 215­221.  European Journal of Information Systems, 2(3), 211­223.  Chapman & Hall, London.  Chapman & Hall, London.  Integrating the costs of a manufacturing IT/IS infrastructure into the investment decision­making process. Technovation, 17(11/12), 695­706. , 75­85.  Training and Development, 51(1), 50­51.  Information Systems Management, Winter, 33­39. 2 Working Conference on the Information Systems Research Arena of the 90s Challenges, Perceptions, and Alternative Approaches, Copenhagen, Denmark, 14­16 December, 1990, 27­49.

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