Benefits Realisation

During business case development, a common ICT capability initiative outlines the benefits it is expected to achieve as the justification for it to proceed. Once the initiative has been delivered, the actual benefits realised should be tracked and made visible in order to demonstrate whether or not they are in line with expectations and targets in the business case.

Benefits can be direct or indirect, quantitative or qualitative and monetary or non-monetary and can range from high level strategic benefits (qualitative) to operational and task related benefits (quantitative and qualitative).

The need to comprehensively determine benefits, and develop a strategy, framework and plans for their realisation, is incorporated into the Better Business Cases for Capital Proposals Toolkit developed by Treasury.

In the case of direct monetary benefits realisation, agencies should ideally be able to isolate and prove both pre and post initiative spend on the particular ICT category that the initiative relates to, and be able to demonstrate both the efficiency and effectiveness gains achieved as a result of joining the initiative.

Agency uptake of services is often a good proxy for the realisation of benefits in cases where detailed financial information can not be obtained from agencies as typically greater economies of scale are realised as more agencies join up to an initiative. In order for any benefits realisation framework to be optimised, agency participation and data sharing throughout all stages of the initiative is crucial.

The development of a benefits realisation assessment is a key focus for the upcoming year and will assist in ensuring common ICT capability initiatives are tracking, recording and reporting on the realisation of benefits at appropriate intervals and through the appropriate channels.

See case studies for some examples of recent common ICT capability initiatives along with the benefits they have provided.