WHERE ARE THE BENEFITS?

Forget about the intangible benefits. So what if it looks better or is simpler?
These qualities only become benefits if they can be translated into tangible
savings, revenue, or productivity. Thus, ease of use is translated into reduced
training. Table 1.1 provides a list of tangible benefits and suggests how they can
be measured. Table 1.2 provides a list of intangible benefits and how they might
be converted into tangible benefits. It is okay to mention the fuzzy benefits as an
afterthought but not as a central theme.
Why take such a hard line? Because you have to be able to cull out the re-
quests for new systems and prioritize future work in terms of its impact. If you
equate tangible and intangible benefits, you risk credibility for IT and jeopardize
future management support.


Examples of Tangible Benefits
Benefits Comments
Ease of use Less training, fewer errors
More of the process covered Fewer shadow systems and manual work
Simpler transactions Faster to do the work, productivity
Productivity higher Reduced time per transaction
Simpler work Restructured jobs and descriptions
Reduced staff required Reduced cost of work
Reduced errors and rework Higher volume of work/time (more throughput)
Faster processing of work Higher volume of work/time


Examples of Intangible Benefits
Benefits Comments
Simpler Ease of usee
Less complex transactions Lower labor cost per transaction
Friendlier system Less trained and experienced staff needed
Better fit with process Productivity higher
Easier to support Lower support costs

Everyone talks about benefits when people approve an implementation
project. Yet it is interesting that this is forgotten after implementation has been
completed. Is it because people fear that there will be no benefits? Is it because
the benefits at the start were overstated? Or, is it because they did not measure
the business process before they began the implementation? Whatever the
reason, it is not uncommon. How should you address this? Following are some
guidelines:
• Measure the business process that will be supported by the new technology
when implemented. This will provide a baseline for later comparison.
• Measure at the general process or department level, as well as at the detailed
transaction level. This will provide validation for general measurements.
• Measure the improved process and new system at the transaction level and
work your way up to the process. This will provide a basis for before and
after comparison