Co-evaluation of IT value as an activity for effective project appraisal at ex-ante stage

Abstract

The business benefits of IT projects are becoming the main determining factor for selecting projects at the ex-ante justification stage. At this stage, the identification and measurement of benefits is usually abdicated to business management and IT professionals support as technical advisors. However, there is still on-going evidence that shows that organisations have not been able to appropriately evaluate IT benefits. This paper highlights the importance of close collaboration between business managers and IT managers for effective and appropriate IT benefit evaluation at the ex-ante justification stage. Activity theory was applied as analytical model to understand and explain the dynamics of the activity in pursuit of achieving improved outcome. The activity analysis sees the IT project benefit evaluation as a systemic entity that consists of elements with shared motive for effective identification and measurement of IT value. The paper presents a case study in a large academic institution to assess the nature of joint participation of evaluators for effective IT project appraisal and to identify the desired roles and responsibilities needed for effective IT benefit evaluation. Close collaboration and partnership between users and IT professionals is shown to be a crucial component in the justification process. The roles and responsibilities of IT management exceeds beyond the task of technical advisors. New roles and responsibilities are proposed to resolve some of the challenges faced with the current justification process in the organization. The paper provides plausible insights for IT project evaluation research and for practitioners that aim to improve their benefit evaluation. Close collaboration and partnership between users and IT professionals is shown to be a crucial component in the justification process. The roles and responsibilities of IT management exceeds beyond the task of technical advisors. New roles and responsibilities are proposed to resolve some of the challenges faced with the current justification process in the organization. The paper provides plausible insights for IT project evaluation research and for practitioners that aim to improve their benefit evaluation.