23 research outputs found

    BENEFITS MANAGEMENT – A LITERATURE REVIEW AND ELEMENTS OF A RESEARCH AGENDA

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    Benefits Management (BM) deals with the systematic planning, realization and controlling of the intended benefits of IS/IT projects, beyond the traditional success measures of staying within project time frame and budget limits. The article describes the results of a BM literature review that seeks to describe the state-of-science as well as to identify fields of promising further research. Our main findings are that, although the pioneering work of Ward et al. on BM have structured the discipline early on and have been adopted as a basis by other researchers, the research on the BM process itself is still scarce and many opportunities for future research remain open

    Towards an Economic Justification of Service Oriented Architectures - Measuring the Financial Impact

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    Service oriented architectures (SOA) herald a new generation of application systems. Whereas current systems were to be chosen and operated as self-contained systems of individual vendors, service oriented architectures allow for integrating application functionality from different sources internal or external to a company according to individual needs within a specific context. Vendors of ERP systems are developing service oriented product variants and intermediaries for trading services over the internet have established already. Therefore, companies are increasingly confronted with the question, to what extend the adoption of SOA turns out to be a profitable venture. As out-payments can be well estimated, the question is: “What is the actual economic value to be gained by utilizing SOA-enabled systems and what monetary consequences are associated with a SOA adoption?” With this contribution we present an approach to measure the financial impact of SOA based on conceptual process models

    Toward IT Value Mapping - An Approach to Value-Based IT Management

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    Recent research has shown that companies face considerable difficulties in implementing a value-based management of their IT portfolios. This paper therefore presents an approach for measuring and managing the business value of IT investments. To ensure practicability, our approach is derived from a set of practice-based requirements extending previous empirical work. In our conceptual model we distinguish between capital budgeting and ongoing value management. For capital budgeting we propose to assess IT investments according to their expected business value by using net present value analysis and a scoring model. For ongoing value management we recommend to keep track of a set of project specific key performance indicators to ensure that the desired benefits are realized. In order to link these two fundamental processes, value drivers and measurable performance indicators have to be identified. Thus we combine established evaluation for an integrated IT Portfolio assessment considering financial, non-financial and risk effects as well

    Towards Value-Based Management of Flexible IT Environments

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    Natural and Design Science Perspective on the Business Value of IT

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    This paper provides a structured overview of selected articles concerning the research on the Business Value of IT. It aims to identify key themes within this field, as well as research gaps. As our guiding framework, we divided the literature to two categories reflecting the main approaches within IS business value research: First, papers that can be assigned to the Natural Sciences Paradigm dealing with the question of how and why IS/IT create value. Second, papers that are based on the Design Science Paradigm dealing with the actual realization and evaluation of the BVIT, which are the key subjects from a management point of view. In a third step, we identify research that combines both paradigms, since the combination of the two research paradigms would be valuable for both research streams

    AN EA-BASED APPROACH TO VALUATE ENTERPRISE TRANSFORMATION: THE CASE OF IS INVESTMENTS ENABLING ON DEMAND INTEGRATION OF SERVICE PROVIDERS

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    Determining the value contribution of IS investments is a crucial task to support conscious decisions, e.g. about the scope or for or against the implementation of these investments. IS investments transform an enterprise not only in its IS related architecture, but often enable enhancements within the business related architecture. Valuating IS investments from an integral point of view therefore means to measure the value contribution to all affected artifacts of an enterprise. Enterprise architecture (EA) used as a coordinative framework to valuate enterprise transformation may help to support this goal. We propose a valuation approach for IS investments based on EA offering two advantages: As through EA all artifacts of and their relationships within an enterprise are known, the impact of IS investments on all architectural layers can be identified and attributed to the IS investments as an integral value. Furthermore EA provides (detailed) models of all artifacts changed. These models can be used to support the valuation of the IS investments? impact on all affected artifacts. To demonstrate how this valuation approach can be tailored for valuating a concrete IS investment, we apply it to the exemplary case of valuating an IS investment enabling the on demand integration of service providers. Therefore we model the enabled enhancements of this IS investment on the business and business process architecture, relating on the basic optimization problem of capacity planning within a certain business process. A case study of the payment transaction process of a banking transactions provider finally shows the applicability of the valuation approach

    Manage Your \u27Blind Flight\u27 - The Optimal Timing for IT Project Re-Evaluation

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    As the value of an IT project can change over time, management is in blind flight about the state of the project until the project has been re-evaluated. As each evaluation causes costs, continuous evaluation is economically unreasonable. Nevertheless, the blind flight should not take too long, because the project value can considerably deviate from its initial estimation and high losses can occur. To trade off costs of re-evaluation and potential loss of project value, this paper will elaborate upon an economic model that is able to determine the optimal time until re-evaluation considering the risky cash flows of a project. Based on a simulation, we find that it makes good economic sense to optimize the interval of re-evaluation. Therefore, companies are able to avoid financial loss caused by evaluating too early as well as hazarding project value caused by evaluating too late

    Application Portfolio Management—An Integrated Framework and a Software Tool Evaluation Approach

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    Despite the growing number of organizations that have lost track of their application landscape and have suffered from a sharp increase in application portfolio complexity, a comprehensive and systematic approach to Application Portfolio Management (APM) still appears far from being adopted. To move the adoption process along, this paper develops a comprehensive framework assimilating and extending previous research and presents an APM process comprising data collection, analysis, decision-making, and optimization phases. This paper also presents an approach for evaluating software tools for APM and identifies which software tool families are best able to provide support for specific purposes. With this integrated conceptual guideline for APM and its translation into a model for measuring appropriate practical support, this paper not only allows for a move more deeply into the research area but also offers advice for both researchers and practitioners
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