Friday, February 04, 2005

More on Benefits Realisation

I was in conversation with someone today and the topic got around to Benefits Realisation. [I know I lead a weird life - what can I tell you!]

I was asked to try and explain my understanding of the concept and I floundered around desperately looking for an explanation that could clearly articulate my current thinking on the subject.

I flung my mobile phone on the table and suggested that it was a perfect example I could use to explain the concept.

If a company was to invest in the development of a mobile phone network and the building of handsets for its staff then one way of looking at the value for money equation would be to determine the cost of the project to build the network and the handsets and of course all of the hardware and software to manage it all and charge the customer for the cost of the development and production.

On receiving the goods the customer would have met his/her expectations and had a mobile phone network and handsets for all of its staff - thus it could be argued that it had received value for the money invested at this point.

Is this Benefits Realisation?

I guess it is, in part!

Then again, you could ask "What use is a mobile phone sitting on a desk without being used?"

The answer is, "Unrealised benefits."

Thus if you actually USE what you have built then over time there are more measurable benefits that accrue. In this case the obvious productivity enhancement for the company employing staff who are available even when they are not at their desks.

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