benchmarking the organizational benefits of it - master’s thesis
TRANSCRIPT
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Benchmarking the organizational benefits of IT
Diderik van WingerdenMay 22, 2008
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What is “benchmarking”? Project context: M&I/Partners IT benchmarks Research objective Research framework Exploration of “IT benefits” Designing the benchmark instrument Empirical study: testing the instrument Conclusions and recommendations The next step..
Contents
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What is “benchmarking”? Take “snap-shots” Find “best practices” Measure, compare, analyse and improve Some definitions:
“[..] a process that helps agencies to find high performance levels (benchmarks) in other organizations and learn enough about how they are achieving those levels so the practice or process producing the performance can be applied in one’s own agency.” (Keehley in Nelissen and De Goede 1999)
“The core of benchmarking: learning about your own organization through other organizations.” (Van Eekeren 2003)
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Project context: M&I/Partners IT benchmarks
Yearly IT benchmarks for: Housing associations Municipalities Health care
Focus on IT costs: Total Cost of Ownership (TCO)
Also includes simple measurement of: Application functionality IT process maturity
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Project context: M&I/Partners IT benchmarks (2)
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SpraakAppsWANLANWerkplekICT-mgnt
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Project context: M&I/Partners IT benchmarks (3)
Questions from participants: What causes the differences in IT costs levels? Does an organization with a lower IT costs level do better than
an organization with a high level? Or is a higher IT costs level justified when more benefit or
value is delivered to the organization? Now we know our IT costs, but what are the benefits?
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Research objective “Develop a practical instrument for an IT benefits
benchmark which evaluates the organizational benefits of IT and compares these between organizations.”
Preconditions: Easy to use, limited effort Generally applicable across industries
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Research framework
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Exploration of “IT benefits”
Support for the organization’s strategy or vision
Long- or short-term viability of the organization
Desire to be seen as innovative
Flatter organizational structureIncreased agility
Better control through improved information
Reduced headcount
Improved turnaround time
Employee self-service
Compatibility with suppliers’ systemsProduction of standard reports
Increased productivity
Differentiate the product
Improved communication and collaboration opportunities
Creation of new industry entry-barriers
Keeping up with competition
Automating of labour-intensive tasks
Transforming an organization fundamentally
Reduction in property costs
Permit new business models
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Exploration of “IT benefits” (2)
Direct Indirect
Non-financial
FinancialMea
sura
bilit
y
Causality
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Designing the benchmark instrument
organization
processes
Information systems
IT infrastructure
generic industry specific
Information Economics
method
Method of Bedell
IT infrastructure method
business process categories
list of information systems
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Empirical study: testing the instrument Qualitative field research:
Semi-structured interviews Interviews with:
6 housing associations 2 municipalities 1 financial service provider 1 international real estate company 3 IT Economics experts
Field test: 3 housing associations
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Empirical study: testing the instrument (2)
EIO: effectiveness of IS
IIO: potential of IT
0
Invest selectively
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10Invest aggressively Invest selectively
Stabilize Disinvest
Association A
Association D
Association C
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Empirical study: testing the instrument (3)
Housing Association A Housing Association B
EIA: effectiveness of IS
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Conclusions and recommendations Instrument proven useful for housing associations
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Extra
Kwaliteit informatievoorziening(gewogen naar bedrijfsbelang)
Potentieel van ICT (gewogen naar bedrijfsbelang)
0
Invest selectively
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10Aggresief investeren Selectief investeren
Stabiliseren Desinvesteren € 70 / VHE€ 80 / VHE€ 90 / VHE
€ 100 / VHE
€ 110 / VHE
€ 120 / VHE
€ 130 / VHE
Woningcorporatie A
Woningcorporatie B
Woningcorporatie C
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Extra (2)
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Extra (3)
ICT-kosten als percentage van de jaaromzet
Potentieel van ICT (gewogen naar bedrijfsbelang)
0 3,00 %
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Woningcorporatie A
Woningcorporatie B
Woningcorporatie C
1,50 % 2,00 % 2,50 %1,00 %0,50 %
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Extra (4)