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Tables of Contents for The Effective Measurement and Management of It Costs and Benefits
Chapter/Section Title
Page #
Page Count
Butterworth-Heinemann/Computer Weekly Professional Series
xi
About the Authors
xiv
How to use this book
xvi
Preface to the first edition
xvii
Preface to the current edition
xix
Foreword
xx
The elusive nature of IT benefits
1
22
Introduction
1
1
Economics of information
2
1
Some progress in understanding information systems
3
1
The problems with IT benefit measurement and management
4
5
Investment, value and economics
9
4
IT investment as an asset
13
1
Processes, practices and people
14
1
Looking for benefits and value
15
1
Primary stakeholders
15
2
The locus of responsibility
17
3
Summary
20
3
Why evaluate information technology investments?
23
10
Introduction
23
2
Different approaches to evaluation
25
3
Establish the costs
28
1
The problems of benefit evaluation
29
2
Summary
31
2
Aspects of the IT investment decision process
33
24
Are IT investment decisions different?
33
3
Must-do IT investments
36
1
A core business investment decision
37
2
Investment in a prestige project
39
3
Investments in research and development
42
2
An IT investment
44
6
A way forward
50
4
Summary
54
3
Issues and techniques for IT evaluation
57
28
A concept of value
57
1
Value as a function of context and perception
58
2
Measuring business performance
60
2
When is performance measured
62
2
The assessment of IT effectiveness
64
2
Purpose of the IT investment
66
1
Matching the assessment effort to strategy
66
1
Different approaches to measurement
67
1
Intangible benefits
68
3
Specific methodologies
71
8
Classification of methodologies
79
4
Choice of evaluation methodology
83
1
Summary
83
2
Identification of IT costs
85
10
Introduction
85
1
The costing process
86
2
Acknowledging cost portfolios
88
1
Direct cost portfolio
89
1
Indirect human cost portfolio
90
2
Indirect organisational cost portfolio
92
2
Summary
94
1
It cost control
95
12
Introduction
95
1
An IT or IS department budget
96
3
Assumptions underpinning IS management
99
1
Situational audit
100
1
Future requirements -- the strategic information systems plan
101
1
Methods for cost improvement
102
2
The commercialisation of the IT department
104
1
Summary
105
2
It business case accounting
107
22
Introduction
107
1
Concepts required for business case accounting
107
3
Pattern of costs
110
1
Sources of cost estimates
111
1
Business case accounting in practice
112
1
Cost displacement
112
4
Cost avoidance
116
1
Decision analysis
117
2
Impact or time release analysis
119
1
How to put a financial estimate to an intangible benefit
120
1
Transformate analysis
121
1
Ex-post investment evaluation
122
1
Processes for business case accounting or financial analysis
123
1
Deterministic analysis
124
2
Summary
126
3
Risk analysis
129
20
Introduction
129
4
Using spreadsheets for risk analysis
133
5
Worked examples
138
9
Financial risk review process
147
1
Summary
147
2
Evaluation of the IT function
149
58
A holistic approach to IT function evaluation
149
2
Goal-centred versus systems' resources
151
1
Tangible versus intangible benefits
152
1
User information satisfaction (UIS)
153
1
A gap approach to measurement
154
6
A gap model applied to an office automation system
160
6
Basic results
166
2
Some implications arising from the analysis
168
2
Performance analysis
170
3
Factor analysis
173
7
Summary of findings
180
1
Analysing qualitative information
180
10
A multiple gap approach to measuring UIS
190
14
Using a questionnaire approach to measure IT effectiveness
204
1
Summary
205
2
Ranking and scoring
207
6
Introduction
207
1
Five steps to evaluation
207
3
A spreadsheet system for overview evaluation
210
2
Summary
212
1
Value for money and health checks
213
18
Efficiency and effectiveness studies
213
1
A value for money study
214
1
Setting up a value for money study
215
2
Detailed planning of the study
217
5
Analysing the results
222
2
A list of action points
224
1
A health check review (HCR) study
224
1
NCC HCR study
225
4
Summary
229
2
Designing IT surveys for benefit measurement
231
30
Introduction
231
1
What is a survey?
232
1
Approaches to data collection
232
3
Sampling
235
9
Questionnaire design
244
10
Measurement scales
254
3
A guide to conducting a survey
257
1
Summary
258
3
Evaluation and project management
261
26
Introduction
261
1
The traditional approach
262
3
Moving away from the traditional approach
265
1
Active benefit realisation
266
1
The evaluation process
267
6
The ABR pictures
273
10
Using the pictures
283
3
Summary
286
1
Final thoughts
287
8
Introduction
287
1
No obvious methodology
288
1
Start with the high level view
289
1
Know the purpose of the evaluation
290
1
Evaluation is never trivial nor inexpensive
291
1
A tool kit
292
1
A change in culture
292
1
Summary
293
2
Appendices
295
62
A Glossary of terms
295
12
B Acronyms
307
4
C Financial measures used in cost benefit analysis
311
4
D Factor analysis
315
8
E Sample sizing scenarios
323
8
F Measurement of IS effectiveness -- a questionnaire
331
6
G Active benefit realisation -- a questionnaire
337
8
H Issues addressed in effectiveness surveys
345
4
I Bibliography and reading list
349
8
Index
357