IT Investments: Managing the Realization of Business Benefits

This essay discusses the crucial aspects of IT and business alignment, focusing on managing the realization of business benefits from IT investments. It highlights the importance of understanding that IT itself doesn't inherently provide value; instead, benefits arise from how individuals and groups within an organization leverage IT to perform tasks more efficiently. The paper emphasizes that business managers and users are best positioned to identify and implement changes that lead to tangible benefits. It also addresses the need for actively managing benefits, as they do not automatically result from IT projects. The author's understanding of IT benefits management is challenged and expanded by the concept of benefits dependency networks (BDN), which provide a framework for linking investments to desired outcomes. The essay concludes by reflecting on the strengths and weaknesses of the reviewed paper and the key learnings gained, emphasizing the importance of aligning IT with business objectives to achieve a return on investment.

Running head: IT AND BUSINESS ALIGNMENT
IT AND BUSINESS ALIGNMENT
Name of the Student
Name of the University
Author Note:

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Managing the Realization of Business Benefits from IT Investments
Joe Peppard
John Ward
Introduction
As a result of investment in information technology, most of the organization are
emphasizing on understanding its benefits. The benefits of management approach start with both
business manager, and IT professionals focus on seven-question regarding the IT investment
(Peppard, Ward and Daniel 2008). This also focus clear idea regarding who requires to be
charged of carrying out required changes and providing the required outcomes. The whole
network aims to provide a basis that can be used for the development of the business case
suitable for current investment. There is suitable for plan change management which helps in
delivery of required benefits.
Purpose of paper
The main intention of the paper is all about “managing the realization of business benefits
from IT investment”. Management practices provide some clear insight into the origins for
inability to provide business benefits. The purpose of paper is all about discussing benefits
through IT.
Discussion
IT and Business Alignment Practices
There are mainly five principles which helps in realizing benefits by making use of IT.

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IT does not have an inherent value: Technology does not assure any kind of benefits for
value creation. The value of technology is not all about its possession.
Benefits arises when IT people carry out things in different way: Benefits come into
place when either group or individual with the organization carry out the roles in much efficient
way.
Only business managers and user can understand the business benefits: Benefits
merely result changes and any kind of innovation in working ways (Khumalo and Chigona
2017). Both business manager and user can easily make those changes.
All IT project have outcomes, but all outcome does not have benefit: IT project come up
with negative outcomes which can also affect the organization survival.
Benefits need to be actively managed: Advantages are not just the outcomes which occur
in automatic way. Accumulation of benefits completely lags its implementation.
Knowledge gained
IT benefits management stand out to be method of organizing and complete management
so that the potential outcomes can be obtained from using IT. Benefits management focus on
some crucial points which can arise from changes done either by individual or group of user.
Coming up with the benefit realization plan merely begins with answering some of the question.
The answer is required for developing a business case for change management plan (Betz and
Henningsson 2016). It helps in delivering the overall benefits. The required knowledge helps in
addressing most of the question which is found in an individual. There are large number of
benefits which is inclusive of collection of tools and framework needed for helping the

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organization. It is all about collective knowledge for developing answer for the question and
coming up with benefit realization.
Author confronted and challenged my current understanding
The author has focused on some of the areas which need to be address like benefits of
network dependency. The tool needed for addressing all the seven-question is all about
construction of benefit realization plan. Benefits dependency network aims to provide the right
framework which is needed for linking overall investment and needed benefits. BDN focus on
constructing a collection of workshop along with central IT staff and sales and marketing from
more than fifteen countries (Apergis et al. 2019). In order to develop the BDN, the team merely
moves in backwards direction that is from right to left. The mere focus is all about agreed
investment objectives and benefits obtained by both sales and marketing manager.
Changes can be identified in the BDN, which can be differentiated into business changes
and enabling changes. Business changes stand out to be permanent changes that focus on
working practices and relationship (Simoes, Caixeta-Filho and Palekar 2018). These changes
cannot be done until and unless new kind of IT capabilities are made available for use. On the
contrary, there are large number of changes which are required for bringing new system into
effective operation.
Role of manuscript has conceptualized some aspect of IT and business
alignment
The manuscript has deepen my knowledge regarding the benefits of management
approach. It is merely describes the idea how it is used by one hundred organization on the
global platform. Along to its use by large organization, it is also used by smaller firm (Nunes

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2018). This particular approach is being used in range of public sector, which is inclusive of
healthcare, police, and taxation.
Conclusion
The above pages help us in carrying out an idea regarding both strength and weakness of
the paper under review. The next section deals with findings for IT and business alignment
practices. The last section deals with different kind of learning when I started. The last section
deals with challenges and confronted which challenged the current understanding. In most of the
organization IT comes up with poor reputation. It is due to a list of reasons that is failing to
provide value for money.

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References
Apergis, N., Babalos, V., Christou, C. and Gupta, R., 2019. Are there Really Long-Run
Diversification Benefits from Sustainable Investments?. International Journal of Business and
Economics, 18(2), pp.141-163.
Betz, M. and Henningsson, S., 2016. An Approach for Assessing the Benefits of IT Investments
in Global Supply Chains.
Khumalo, N. and Chigona, W., 2017. Challenges in how to effectively evaluate the business
benefits of information systems investments. Available Source: https://www. rsa. anu. edu.
au/media/552894/Khumalo-Chigona-ISF-2014-Challenges-in-Ho w-to-Effectively-Evaluate-the-
Business-Be nefits-of-Information-Systems-Investment s. pdf.
Nunes, S.R., 2018. Value focused assessment of cyber risks to gain benefits from security
investments.
Peppard, J., Ward, J. and Daniel, E., 2008. Managing the Realization of Business Benefits from
IT Investments. MIS Quarterly Executive, 6(1), p.3.
Simoes, D.D.C., Caixeta-Filho, J.V. and Palekar, U.S., 2018. Fertilizer Distribution Flows and
Logistics Costs in Brazil: Changes and Benefits Arising from Investments in Port
Terminals. International Food and Agribusiness Management Review, 21(1030-2018-1808),
pp.407-422.