Improving the impact of IT development projects: the Benefits Realization Capability Model

The return that organizations derive from investments in information systems and technologycontinues to disappoint. While there are many theoretical prescriptions as to how theplanned benefits from an IT project might best be realized, there is very little empiricalevidence, as to whether such advice is being heeded in practice. Drawing on the resourcebasedview of the firm, a conceptual model of a benefits realization capability is presentedand developed. In this model, the benefits realisation capability is operationalized throughfour distinct competences, each of which is underpinned by a variety of socially definedpractices. The model was populated by using a thorough review of the literature to identifyand categorise those specific practices that have the potential to contribute to the effectiveachievement of benefits from IT investment projects. These practices are then studied in anempirical examination of 25 IT projects. The analysis finds no evidence of benefitsrealization practices being adopted in any consistent, comprehensive or coherent manner.Effective benefits realization requires an ongoing commitment to, and focus upon, thebenefits, rather than the technology, throughout a system’s development, implementationand operation.