Effective Measurement and Management of ICT Costs and Benefits (eBook)

Frank Bannister, Arthur Money, Dan Remenyi (Autoren)

eBook Download: EPUB

2007 | 3. Auflage
408 Seiten
Elsevier Science (Verlag)
978-0-08-048875-2 (ISBN)

Infos

"This is a new and extensively updated edition of one of leading and authoritive books on the subject of IT costs and benefits. Since it was first published in the early 1990s, this book has established itself as the most comprehensive and complete approach to understanding the economics of how information is used to boost the efficiency or effectiveness of companies. The ideas in this book are used extensively in business, and the book is widely adopted and recommended at leading business schools around the world.

This book will show you:
How to use cost benefits analysis or business case accounting
How to use user satisfaction surveys and value for money studies
How to integrate IT benefit delivery into IT project management

This book covers a wide spectrum of IT cost and benefit solutions, ranging from business case accounting and user satisfaction studies right through to the business processes which need to be in place in order to ensure the effective measurement and management of IT costs and benefits. This book takes you through a basic understanding of the issues involved and onto the detail of how to perform the techniques required to measure and thus mange IT costs and benefits.

The rapidly increasing level of expenditure on information technology in most organisations is one reason why IT benefits management has become an important business concern. Top management have begun to insist that much more attention be paid to the economic aspects of information systems.

put the difficulties with IT benefits behind you
measure IT benefits and manage their delivery
know what measurement tools are available for the task

New to the third edition: The evolution of thinking in ICT costs and benefits, management instinct, the chapter on Identification and Treatment of ICT costs is replaced with a more thorough treatment of the subject, the chapter on Risk Analysis is expanded by 50% with new and latest thinking on the subject, new chapters on: ICT evaluation as a political act, and the evaluation of an outsourcing contract. Extensive revisions of the material through out bring the book up-to-date with the latest thinking and evaluation techniques complete with a number of suggested websites through out the book where more information about the subject may be found.

Covers all the practical aspects of business case accounting, ranking techniques and user information system surveys in connection with the effective measurement and management of IT costs and benefits
Identifies a basic framework to help you understand the economic and financial issues of information technology investment
Gives you evaluation concepts as well as several approaches to cost and benefit measurement
Provides you with an IT Assessment Metric (ITAM) - which allows you to measure your firms progress towards obtaining maximum value from information technology procured


* Gives you a basic framework to help you understand the economic and financial issues of IT investment
* Covers all practical aspects of business case accounting, ranking techniques, user information system surveys IT costs and benefits analysis
* Provides you with an IT Assessment Metric - allows you to measure your firms progress towards obtaining maximum value from information technology procured"

Inhalt

Cover 1
Copyright page 5
Contents 6
About the authors 12
How to use this book 14
Preface to the first edition 16
Preface to the second edition 18
Preface to the third edition 20
Foreword 22
Acknowledgements 24
Chapter 1 The evaluation of ICT investment – a 50 year odyssey 26
1.1 Introduction 28
1.2 The nature of evaluation 28
1.3 Evaluation in business performance 29
1.4 ICT evaluation 30
1.5 The first era in business computing 31
1.6 The second era in business computing 32
1.7 The third era in business computing 34
1.8 Some non-accounting approaches 36
1.9 The turn of the millennium 39
1.10 Some other ICT evaluation issues 40
1.11 Examining the timeline in more detail 41
1.12 Lessons learnt 45
1.13 Summary 46
Chapter 2 The elusive nature of ICT benefits 48
2.1 Introduction 50
2.2 Economics of information 50
2.3 The problems with ICT benefit measurement and management 51
2.4 Investment, value and economics 55
2.5 ICT investment as an asset 58
2.6 Processes, practices and people 59
2.7 People make ICT work 60
2.8 Primary stakeholders 60
2.9 The locus of responsibility 61
2.10 Summary 64
Chapter 3 The role of instinct in ICT benefits assessment 66
3.1 Introduction 68
3.2 A question of perspective 69
3.3 Some aspects of value 71
3.4 A taxonomy of techniques 73
3.5 Summary and conclusion 79
Chapter 4 The total ICT investment 82
4.1 Introduction 84
4.2 Why is it difficult to account for ICT equipment? 85
4.3 The importance of knowing what has been spent 86
4.4 The total cost of ownership (TCO) 87
4.5 Establishing a framework 87
4.6 The amount invested in software assets 90
4.7 The amount invested in data assets 92
4.8 Intellectual capital 94
4.9 Summary and conclusion 97
Chapter 5 Costing ICT 100
5.1 Introduction 102
5.2 Background – a gap in understanding 103
5.3 A framework for looking at cost issues 104
5.4 Conceptual problems in ICT costing 105
5.5 Costing system weaknesses 111
5.6 Accounting policies 115
5.7 An ICT cost reference model 118
5.8 Summary 122
Chapter 6 Issues and techniques for ICT evaluation 124
6.1 Measuring business performance 126
6.2 When is performance measured or not? 128
6.3 The assessment of IT effectiveness 130
6.4 Purpose of the IT investment 132
6.5 Matching assessment to strategy 132
6.6 Different approaches to measurement 133
6.7 Intangible benefits 134
6.8 Specific methodologies 136
6.9 Classification of methodologies 143
6.10 Choice of evaluation methodology 146
6.11 Summary and conclusions 147
Chapter 7 ICT cost control 148
7.1 Introduction 150
7.2 An IT or IS department budget 150
7.3 Assumptions underpinning IS management 153
7.4 Situational audit 154
7.5 Future requirements – a strategic information systems plan 155
7.6 Methods for cost improvement 156
7.7 The commercialization of the IT department 158
7.8 Summary 159
Chapter 8 ICT business case accounting 160
8.1 Introduction 162
8.2 Concepts required for business case accounting 162
8.3 Pattern of costs 164
8.4 Sources of cost estimates 165
8.5 Business case accounting in practice 166
8.6 Cost displacement 166
8.7 Cost avoidance 170
8.8 Decision analysis – the value of information 171
8.9 Impact or time release analysis 173
8.10 Putting a financial estimate to intangible benefits 175
8.11 Transformate analysis 176
8.12 Ex-post investment evaluation 176
8.13 Processes for business case accounting or financial analysis 178
8.14 Deterministic analysis 179
8.15 Summary 181
Chapter 9 Risk analysis 182
9.1 Introduction 184
9.2 Using spreadsheets for risk analysis 187
9.3 Worked examples 191
9.4 Financial risk review process 198
9.5 Summary 199
Chapter 10 Evaluation of the IT function 200
10.1 A holistic approach to IT function evaluation 202
10.2 Goal-centred vs systems' resources 203
10.3 Tangible vs intangible benefits 204
10.4 User information satisfaction (UIS) 205
10.5 A gap approach to measurement 205
10.6 A gap model applied to an office automation system 210
10.7 Basic results 215
10.8 Some implications arising from the analysis 215
10.9 Performance analysis 219
10.10 Factor analysis 222
10.11 Summary of findings 228
10.12 Analysing qualitative information 228
10.13 A multiple gap approach to measuring UIS 235
10.14 Using a questionnaire approach to measure IT effectiveness 246
10.15 Summary 247
Chapter 11 Ranking and scoring 248
11.1 Introduction 250
11.2 Five steps to evaluation 250
11.3 A spreadsheet system for overview evaluation 252
11.4 Summary 254
Chapter 12 Value for money and health checks 256
12.1 Efficiency and effectiveness studies 258
12.2 A value for money study 258
12.3 Setting up a value for money study 259
12.4 Detailed planning of the study 261
12.5 Analysing the results 264
12.6 A list of action points 267
12.7 A health check review (HCR) study 267
12.8 NCC HCR study 267
12.9 Summary 271
Chapter 13 Designing IT surveys for benefit measurement 272
13.1 Introduction 274
13.2 What is a survey? 274
13.3 Approaches to data collection 275
13.4 Sampling 277
13.5 Questionnaire design 284
13.6 Measurement scales 292
13.7 A guide to conducting a survey 294
13.8 Summary 296
Chapter 14 Evaluation and ABR project management 298
14.1 Introduction 300
14.2 The traditional approach 301
14.3 Moving away from the traditional approach 303
14.4 Active benefit realization 304
14.5 The evaluation process 304
14.6 The ABR pictures 309
14.7 Using the pictures 317
14.8 Summary 319
Chapter 15 Final thoughts 320
15.1 Introduction 322
15.2 No obvious methodology 323
15.3 Start with the high-level view 324
15.4 Know the purpose of the evaluation 325
15.5 Evaluation is never trivial or inexpensive 325
15.6 A tool kit 326
15.7 A change in culture 327
15.8 Summary and conclusion 327
Appendices 330
Appendix A: Glossary of terms 330
A 332
B 332
C 332
D 333
E 333
F 334
G 334
H 334
I 335
J 336
L 336
M 336
N 336
O 336
P 337
R 337
S 337
T 338
V 338
Appendix B: Acronyms 340
Appendix C: Financial measures used in cost benefit analysis 346
Appendix D: Factor analysis 352
Appendix E: Sample sizing scenarios 360
Appendix F: Measurement of IS effectiveness – a questionnaire 368
Appendix G: Active benefit realization – a questionnaire 376
Appendix H: Issues addressed in effectiveness surveys 384
Appendix I: Bibliography and reading list 388
Index 398
A 398
B 398
C 398
D 399
E 400
F 400
G 400
H 401
I 401
K 401
L 401
M 401
N 402
O 402
P 402
Q 403
R 403
S 403
T 404
U 404
V 404
W 404
Y 404

Produkt-Details

• Erscheint lt. Verlag: 27.3.2007
• Sprache: englisch
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Mikroökonomie
• ISBN-10: 0-08-048875-7 / 0080488757
• ISBN-13: 978-0-08-048875-2 / 9780080488752