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Measuring IT benefits: let us count the ways.

David Greenwalt¹, Steven Riney

¹IBM Healthlink Solutions, Denver, USA. dgreenwalt@us.ibm.com

Healthcare Financial Management : Journal of the Healthcare Financial Management Association

|February 24, 2007

Summary

A successful IT benefits measurement program involves four key steps: identifying benefits and metrics early, establishing baselines, analyzing opportunities, and conducting post-implementation audits for effective IT investment evaluation.

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Area of Science:

Information Technology
Business Management
Performance Measurement

Background:

Effective measurement of IT project benefits is crucial for demonstrating value and justifying investments.
Many organizations struggle to quantify the tangible and intangible benefits derived from IT initiatives.
A structured approach is needed to ensure consistent and accurate benefits realization.

Purpose of the Study:

To outline a systematic, four-step process for implementing a successful IT benefits measurement program.
To provide a framework for organizations to effectively track and audit IT project outcomes.
To enhance the accountability and value demonstration of IT investments.

Main Methods:

The study identifies four critical phases in IT benefits measurement.
Phase 1: Pre-funding benefit and metric identification.
Phase 2: Baseline determination.
Phase 3: Benefits opportunity analysis.
Phase 4: Post-implementation benefits audit.

Main Results:

A clear, sequential methodology for IT benefits measurement is presented.
The proposed framework facilitates proactive identification and tracking of IT project benefits.
The process ensures a comprehensive audit trail from initiation to post-implementation.

Conclusions:

Adherence to the four-step process enables organizations to successfully implement IT benefits measurement programs.
This systematic approach improves the accuracy of IT investment evaluations and supports strategic decision-making.
Consistent application of these steps maximizes the return on IT investments.