Abstract
The business challenges that some companies face require enterprise-wide solutions that call for an integrated approach and an effective management of organizational resources to achieve business objectives with an acceptable level of risk. A maturity model is an improvement approach which provides organizations with the essential elements for effective change. The maturity models process helps to integrate traditionally separate organizational functions, enhances goals and priorities, supplies guidance for quality processes, and shares benchmarks for appraising current outcomes. The benefits management approach emerges as a complement to traditional management practices and proposes a continuous mapping of business benefits and the implementation and monitoring of intermediate results. Benefits management reinforces the distinction between project results and business benefits.
TopIntroduction
All organizations are interested in finding ways in which they can ensure their long-term viability, whether they are private firms looking to maximize their shareholder value, or public sector and not-for-profit organizations seeking to maximize their effectiveness. Achieving competitive advantages over competitors has always been the focus of organizations, as only this competitive differentiation can guarantee the long-term sustainability of the organization (Jugdev & Mathur, 2006).
The purpose of the maturity models is to provide a framework for improving an organization’s business result by assessing their strengths and weaknesses, enabling comparisons with similar organizations, and a measure of the correlation between organizations (Ibbs & Kwak, 2000). The maturity models are designed to enable organizations to understand their current level of maturity, highlighting areas that would give them the most value as well as performance improvement in the short and long terms.
A benefit is an outcome whose nature and value are considered advantageous by an organization (OGC, 2010). Bradley (2006) defines it as a result of change which is perceived as positive by a stakeholder. An important aspect in the above definitions is that advantage is owned by individuals or groups who want to obtain value from an investment (Ward & Daniel, 2012).
The benefits management approach emerges as a complement to traditional management practices and proposes a continuous mapping of business benefits and the implementation and monitoring of intermediate results. The benefits are often identified in the early stages of investments to build business cases and sell the idea to interested parties (Remenyi, Money, & Bannister, 2007).
The decision-making process over IS/IT investments is not as objective and transparent as it is claimed to be, creating significant failures on the benefits achievement process (Berghout et al., 2005).
The assessment procedures help an organization to understand where they have been, where they are, and what processes they need to implement in future.
One of the factors that differentiates a successful IS/ IT deployment process from a company is the ability to assess whether investments in IS/ IT have made the promised investments.
The perception of continued failure in IS/ IT investments has led to a new approach to the way projects are managed. The focus should be on realizing the benefits, since this is the main reason for the organization's investment (Ward & Daniel, 2012).
Key Terms in this Chapter
Benefits Managements: Is the process of organizing and managing, such that potential benefits arising from the use of IT are actually realized (Ward & Daniel, 2006 AU51: The in-text citation "Ward & Daniel, 2006" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. , p. 384).
Project Management: Is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements ( PMI, 2016 ).
Project: Is a temporary endeavor undertaken to create a unique product, service, or result ( PMI, 2016 ). AU53: Could not find book authors or editors in this book reference. (Ref. "Project management is the application, 2016")
Maturity Models: Are based on the principle that entities (people, organizations, functional areas or processes) evolve through a process of growth or development towards a more advanced level of maturity, through several different stages ( Becker et al., 2009 ).
Organizational Project Management: Is based on the idea that there is a correlation between an organization’s capability in terms of project, programme and portfolio management, and also its effectiveness in implementing strategy. AU52: Could not find book authors or editors in this book reference. (Ref. "Project is a temporary endeavor, 2016")