Issues in the application of IS/IT investment evaluation and benefits realisation in organisations: preliminary results from a case study

Abstract

The issue of expected and actual benefits realised from IS/IT investments has generated a significant amount ofdebate in the IS/IT literature amongst the researchers, academics, and practitioners. This is as true in Australia as it is in the rest of the developed world. Thus, a detailed program of research into the current Australian practice and processes of IS/IT investment evaluation and benefits realisation was initiated. As part of this research program an in-depth case study of these practices and processes in a large government agency, with a mix of insourced and outsourced IS/IT activities, was conducted. Issues arising from study include a lack of a formal IS/IT investment evaluation methodology and a lack of understanding of the evaluation approach used, a lack of any (formal or informal) benefits realisation methodology and a lack of understanding of benefits management practices, the use of inappropriate measures, and conflicting motivations for outsourcing.