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Business Value Management

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0% found this document useful (0 votes)
158 views2 pages

Business Value Management

Uploaded by

Francis
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Microsoft ®

Business Value Management Service


– the Vital Ingredient
Integrating software,
people and ideas.
Proven Practices to Deliver Value from IT Projects

‘Working in close collaboration with Microsoft’s Strategy Consultants, Unisys


was able to align the technology with real business benefits and distinguish the
true priorities for our customers.’
Paul Bleasby
Managing Consultant, Unisys

Business success demands agile and cost-effective IT, business value delivery – securing strong business
not just as an operational service, but as an engine of alignment, through involvement and ownership. It brings
competitive advantage, delivering new opportunities for into sharp focus the business changes needed to get
increasing profitability and market growth. Yet many people to do things differently and to achieve the
Enterprises are failing to achieve expected business potential benefits from the IT solution. Also, the Benefit
value from their IT investments, Management approach can play a major role in clarifying
both from an inability to identify the drivers for the technology strategy and identifying
and measure benefits, as well process and capability changes required in the IT
as projects which just deliver function. Most of all, it helps to define project priorities
outcomes, not benefits. based on the realisation of benefits.

These findings, contained in a The Benefit Management approach has now been used
recent survey by KPMG Consulting, are backed up in a range of scenarios, including:
by research from Cranfield University School of
Setting Priorities
Management. Cranfield reveals that even those
To prioritise IT investments and ensure a coherent
organisations which claimed their IT projects had
programme of activity, tightly focused on business value.
been ‘successful’ merely meant they had been
delivered to time and cost. Project Planning and Kick-Off
To focus the project on delivering business value and
For Microsoft, this is a strategic issue and, to help
ensuring measurable benefits.
our customers gain the full benefits from Microsoft
technology solutions in increasingly dynamic Project Review
environments, we have developed the Microsoft To review and confirm that an on-going
Business Value Management Service. This Service project is clearly focused on delivering real
combines Microsoft’s expertise in the effective business value. To provide the opportunity
identification and delivery of IT solutions that realise to put stalled projects back on track by
business benefit with Cranfield’s proven Benefit re-addressing the fundamental business drivers
Management approach. of the initiative in a changing environment.

Benefit Management Approach What Makes the Microsoft Business


Cranfield’s Benefit Management approach has a Value Service Successful?
powerful pedigree of proven success. It evolved over a • Early project planning centres on identifying
two-year action research programme, within 12 large measurable benefits and ownership of the
organisations, and subsequently has been implemented business changes to make them happen
and refined within a further 100-plus businesses. The
• Project management concentrates on benefit delivery,
Benefit Management approach is an essential ingredient
with a clear focus on technical readiness, deployment
that tackles head on the trend of sub-standard or zero
and the deliverables that provide the major benefits
business benefit delivery. Its specific purpose is to
organise and manage a project, such that the potential • Checkpoints at the end of major stages in the
benefits arising from the use of IT are actually realised. lifecycle are used to ensure that all relevant groups
Crucially, the Benefit Management approach tackles are involved at the right time in the project and that
many of the major causes of project failure and plays a it is on track to deliver the target benefits
vital role in ensuring that existing and future IT projects
• Clear roles and deliverables for all groups involved are
deliver true business value to your organisation.
pinpointed, with strong communication between groups
The key factors in the Benefit Management approach
are that it shifts the emphasis of projects from
functionality/technology to business benefit and
[Link]/uk/enterpriseservices

Integrating software,
• The concepts of successful IT solution delivery The feasibility of the change programme is checked
people and ideas. embodied in the Microsoft Solutions Framework out, in the light of all the knowledge possessed.
which, with the use of the Benefit Management The implications for the IT function – e.g., processes
approach, focuses on business change and benefits, and capabilities – are also considered at this stage.
with an emphasis on reducing the Time To Benefits A decision is taken as to whether to prepare a
and the delivery of measurable results business case.

• Leveraging unique Microsoft technology insights 6. The Business Case as a Benefits Plan
and capabilities, while employing the latest industry The business case is prepared in the form of a
practice and IT management research – delivered benefits realisation plan – i.e., identifying the
with agility, flexibility and velocity business changes required to deliver the benefits,
as well as the specific measures of benefits and the
• An interactive approach, founded on a workshop-
stakeholders who will own delivery of the benefits
based strategy and shared vision across stakeholders,
and changes.
with project ownership and responsibility clearly
identified from the outset to ensure project success 7. Consideration by the Investment Management Board
The benefits plan is submitted for approval, according
• The focus on ensuring that IT plans are aligned to the
to the usual procedures of the organisation.
business strategy
8. Programme Formally Set Up and Launched
• Selecting the right IT solution to meet the required
The aim is to set up the project/programme
business benefits and to reduce ‘dis-benefits’.
in line with the Benefit Realisation Plan
Route to Benefits and to ensure that the Benefit Management
The Business Value Management Service works as a processes are used to guide the delivery
series of connecting stages, which are applied to meet of the solution and benefits.
the business and IT stakeholder requirements. In the
As the project progresses, the benefit
first two phases – ‘Identity and Structure Benefits’ and
realisation plan is kept constantly under
‘Plan Benefits Realisation’ – there are eight key steps:
review as benefit delivery continues to be
1. Identify and Agree Potential Benefit Scenario a key focus of project activity.
Based on the business drivers set by senior
Having identified and structured the benefits, planned
management, identify a possible change
their realisation and executed the plan itself, the Microsoft
programme to include one or more projects.
process continually reviews and evaluates the results,
2. Identify Sponsor & Key Stakeholders and identifies the potential for further benefits. It also
An owner-sponsor will be needed controls the process, to keep the original benefits on
for each project. The primary track – or to review the benefit priorities, should
stakeholders must be informed conditions change.
and consulted. Objectives for the
Getting IT Right
investment must be established.
Nearly every strategic issue we address is triggered by
3. First Benefits Workshop IT or has consequences for IT. If your organisation’s IT
The first workshop engages the and business strategies aren’t aligned and managed
key stakeholders in structured debate and discussion properly, the potential business value this can yield will
whose output is a network of benefits, plus the actions not be realised. As one commentator has rightly pointed
and changes needed to achieve them. The network out, ‘the major gains come from “doing the right things”,
also identifies and locates the IS/IT functionality which not just “doing things right”’. The Microsoft Business
is needed to enable the change actions to occur. Value Service enables enterprises to clearly identify
‘the right things’ – and put in place the changes and
4. Deeper Benefits Analysis
processes to ‘do them right’ – in order to realise the
The workshop will typically expose gaps in the
benefits that will afford new opportunities and
benefits case and identify further stakeholders who
competitive advantage.
should be involved. These need to be addressed
before proceeding. This phase also usually exposes
For more information
more potential ‘dis-benefits’.
Please contact your MIcrosoft Business Manager
5. Second Benefits Workshop or visit our website:
With the sponsor in attendance, the objectives, scope [Link]
and alignment with business drivers are confirmed.

© 2002 Microsoft Corporation. All rights reserved. Microsoft and the Microsoft logo and are either registered
trademarks or trademarks of Microsoft Corporation in the United States and/or other countries.

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