Warren Buffet once fittingly said, "Price is what you pay. Value is what you get." This quote encapsulates the essence of IT Benefits Management—one of the critical components of Strategic Planning. As digital transformation accelerates, business leaders need to focus on not just implementing technology but also extracting maximum value from it.
IT Benefits Management is an ongoing process that involves the identification, planning, delivering, and evaluation of the benefits of IT investments. These benefits may range from cost-savings and efficiencies to improved customer satisfaction and competitive advantage. IT Benefits Management combats the common problem of IT investments failing to deliver the anticipated value, as found in a study by McKinsey, which revealed that 70% of complex, large-scale change programs don’t reach their stated goals.
Building A Strategic Approach to IT Benefits Management
A strategic approach to IT Benefits Management aligns IT investments with business strategy and objectives. Here are some best practices and key principles for successful IT Benefits Management:
Align IT Investments with Business Objectives: Every IT initiative should be linked to the larger business goals. Organizations must ensure that digital investments are genuinely in line with strategic objectives and can generate measurable outcomes.
Create a Strong Governance Structure: To ensure IT initiatives are strategic and result in real benefits, a strong governance structure is key. This structure should define processes for approval, progress tracking, and benefits realization.
Continuously Measure and Evaluate Benefits: Constant measurement and evaluation of achieved benefits relative to anticipated outcomes are critical. It helps in adjusting strategies, making improvements, and learning from past experiences.
Unlocking the Value from IT Investments
A focus on IT Benefits Management can lead to substantial results. For instance, research by the Boston Consulting Group (BCG) on digital transformation found that companies acquiring strong IT capabilities and effective IT benefits management practices outperformed their peers in nearly every financial metric by 7%. Business leaders must recognize that technology in itself does not add value—it is how the technology is used that drives its value.
Engaging the Entire Organization
IT Benefits Management is not an isolated function; it should involve the entire organization. According to Deloitte, "Organizational Culture is one of the most crucial factors affecting the success of IT transformation initiatives." The employees must understand the strategic importance of IT benefits and be motivated to leverage technology for innovation, improving the business processes, and enhancing customer experience. This organization-wide engagement is essential for realizing the full benefits of IT investments.
Navigating the Pitfalls of IT Benefits Management
While IT Benefits Management is mission-critical, it comes with inherent challenges. Some common pitfalls are:
Underestimating complexity
Failure to articulate the benefits clearly
Lack of tracking and measurement
Resistance to change
Addressing these challenges requires strong leadership, clear vision, openness to change, and an engaged workforce. Business leaders must work proactively to address these pitfalls and put in place robust measures to guarantee the successful realization of IT benefits.
As organizations continue to navigate the complexities of Digital Transformation, the focus on IT Benefits Management must sharpen. The key is to ensure that all IT investments are driven by strategy and deliver tangible, measurable benefits.
In the words of Peter Drucker, "There is nothing so useless as doing efficiently that which should not be done at all." The same holds true for IT. It is not about implementing the latest technology; it's about implementing the right technology that aligns with the strategic objectives and delivers real business value. That is the essence of effective IT Benefits Management.
CUSTOMER TESTIMONIALS
"I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."
– Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."
– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"
– Debbi Saffo, President at The NiKhar Group
"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.
The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."
– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.
"As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for the customer, Flevy and the various authors. This is truly a service that benefits the consulting industry and associated clients. Thanks for providing this service. "
– Jim Schoen, Principal at FRC Group
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.
The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."
– Dennis Gershowitz, Principal at DG Associates
"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."
– David Harris, Managing Director at Futures Strategy
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact that it is not at all just a repository of documents/resources but, in the way that David and his team manage the firm, it is like dealing with consultants always ready to assist, advise and direct you to what you really need, and they always get it right.
I am an international hospitality accomplished senior executive who has worked and lived during the past 35 years in 23 countries in 5 continents and I can humbly say that I know what customer service is, trust me.
Aside from the great and professional service that Flevy's team provide, their wide variety of material is of utmost great quality, professionally put together and most current.
Well done Flevy, keep up the great work and I look forward to continue working with you in the future and to recommend you to a variety of colleagues around the world."
– Roberto Pelliccia, Senior Executive in International Hospitality
SELECT CUSTOMERS
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes across the world—in over 130 countries.
Below is just a very small sample of our customer base.
Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.