Exploring Business Transformation: The Challenges of Developing a Benefits Realization Capability

Abstract

The successful management of change continues to be a major issue for organizations. This article draws on rich qualitative data to provide evidence of issues faced by organizations as they try to realize benefits from investments in IT-enabled change, and as they try to develop and enhance their benefits realization capability. Several of these issues are not effectively covered by previous research, for example managing the overall portfolio of change initiatives and how to develop the capacity of the organization for benefits realization. The research also provides empirical evidence that supports the theoretical propositions from dynamic capability theory that routines (practices) are often similar across different organizations, and that organizations go through a number of stages in developing competences. A further contribution of the research is to develop an enhanced model of an organizational competence, which has important implications for the action required to develop competences.