U.S. patent application number 10/679510 was filed with the patent office on 2005-04-07 for technology benefits realization for public sector.
This patent application is currently assigned to Accenture Global Services GmbH. Invention is credited to Clarkson, Peter H..
Application Number | 20050075915 10/679510 |
Document ID | / |
Family ID | 34394170 |
Filed Date | 2005-04-07 |
United States Patent
Application |
20050075915 |
Kind Code |
A1 |
Clarkson, Peter H. |
April 7, 2005 |
Technology benefits realization for public sector
Abstract
The present invention provides a public sector technology
expenditure benefits realization framework that offers an
unparalleled approach for addressing the very specific needs of
public sector organizations combining the development of the
business case with technology implementation program and
integrating a sustainable long-term benefits realizations program.
Specifically, in one embodiment, the methodology of the present
invention integrates three steps: (1) the visioning phase for
creating the vision for the planned benefits; (2) the integration
phase comprising the integrating the planned benefits from the
technology expenditure; and (3) the realization phase during which
the public entity incorporates a sustainable benefits realization
and monitoring program.
Inventors: |
Clarkson, Peter H.;
(Fairfax, VA) |
Correspondence
Address: |
ACCENTURE, LLP
C/O HOGAN & HARTSON, LLP (IPGROUP)
555 13TH STREET NW, SUITE 600E
WASHINGTON
DC
20004
US
|
Assignee: |
Accenture Global Services
GmbH
|
Family ID: |
34394170 |
Appl. No.: |
10/679510 |
Filed: |
October 7, 2003 |
Current U.S.
Class: |
705/7.12 ;
705/7.36; 705/7.37; 705/7.38; 705/7.39 |
Current CPC
Class: |
G06Q 10/0631 20130101;
G06Q 10/0637 20130101; G06Q 10/06393 20130101; G06Q 10/0639
20130101; G06Q 10/04 20130101; G06Q 10/06 20130101; G06Q 10/06375
20130101 |
Class at
Publication: |
705/007 |
International
Class: |
G06F 017/60 |
Claims
1. A method for calculating benefits to a public sector entity from
a technology expenditure, the method comprising the steps of: (a)
classifying one or more activities of the public sector entity,
wherein said classifying is specifically configured to said public
sector entity; (b) determining a plan for implementing the
technology expenditure; and (c) determining the net effect on each
of the activities from said plan for implementing the technology
expenditure.
2. The method of claim 1, wherein the activities of the public
sector entity selected from a function selected from a group
consisting of: Strategic Management; Financial Management; Revenue
Management; Human Resource Management; Resource Management;
Procurement & Supply Chain Management; Facilities & Asset
Management; Customer Relationship Management; Program and Case
Management; Corporate Data Management; Systems Management; and
e-Government Management.
3. The method of claim 1, wherein the step of classifying one or
more activities of the public sector entity comprises the steps of:
forming a detailed functioning mapping; and creating a value
driver.
4. The method of claim 3, wherein the step of forming detailed
functioning mapping further comprises the steps of: functional
mapping; process group mapping; process mapping; and activity
mapping.
5. The method of claim 3, wherein the step of developing a value
driver further comprises the steps of: developing a value driver;
developing a transformation benefit; and developing a technology
expenditure benefit.
6. The method of claim 1, wherein the step of determining a plan
for implementing the technology expenditure comprises the steps of:
integrating a benefits framework; and developing a benefits
delivery plan.
7. The method of claim 6, wherein the step of integrating a
benefits framework further comprises the steps of: adjusting a
benefits framework to the technology expenditure; and integrating
the adjusting a benefits framework with a technology expenditure
implementation.
8. The method of claim 6, wherein the step of developing a benefits
delivery plan further comprises the steps of: Developing a detailed
benefit delivery plan; approving said detailed benefit delivery
plan; and forming an organizational benefits program.
9. The method of claim 1, wherein the step of determining the net
effect on each of the activities further comprises the steps of:
benchmarking total costs; developing a achievement target;
accessing a probablity range; and determining an expected
benefit.
10. The method of claim 1 further comprising the step of monitoring
the activities to determine compliance of the public sector entity
with the plan.
11. The method of claim 10, wherein the step of monitoring the
activities further comprises the steps of: implementing a benefit
delivery plan; and monitoring benefits realization.
12. A system for calculating benefits to a public sector entity
from a technology expenditure, the system comprising: a classifying
module that classifies one or more activities of the public sector
entity, wherein said classifying is specifically configured to said
public sector entity; and a net effect determining module that
determines a net effect on each of the activities from implementing
the technology expenditure, wherein summing said net effect on each
activity produces a estimate of the benefits to a public sector
entity from a technology expenditure.
13. The system of claim 12, wherein the activities of the public
sector entity selected from a function selected from a group
consisting of: Strategic Management; Financial Management; Revenue
Management; Human Resource Management; Resource Management;
Procurement & Supply Chain Management; Facilities & Asset
Management; Customer Relationship Management; Program and Case
Management; Corporate Data Management; Systems Management; and
e-Government Management.
14. The system of claim 12 further comprising a module for
realizing the net effect for each of the activities.
15. A program storage device readable by a machine, tangibly
embodying a program of instructions executable by a machine to
perform method steps of: classifying one or more activities of the
public sector entity, wherein said classifying is specifically
configured to said public sector entity; determining a plan for
implementing the technology expenditure; and determining the net
effect on each of the activities from said plan for implementing
the technology expenditure.
16. The program storage device of claim 15, wherein the activities
of the public sector entity selected from a function selected from
a group consisting of: Strategic Management; Financial Management;
Revenue Management; Human Resource Management; Resource Management;
Procurement & Supply Chain Management; Facilities & Asset
Management; Customer Relationship Management; Program and Case
Management; Corporate Data Management; Systems Management; and
e-Government Management.
17. The program storage device of claim 15, wherein the program of
instructions executable by a machine further performs the method
step of realizing the determined net effects by implementing a
benefit delivery plan and monitoring benefits realization.
Description
CROSS REFERENCE TO RELATED APPLICATIONS
[0001] Not Applicable
SPONSORED RESEARCH OR DEVELOPMENT
[0002] Not Applicable
SEQUENCE LISTING
[0003] Not Applicable
BACKGROUND OF THE INVENTION
[0004] 1. Field of the Invention
[0005] The present invention relates to a system and method for
identifying and quantifying the benefits to a public sector entity
from technology acquisitions. Furthermore, the present invention
provides a methodology for guiding a public sector entity to
realize the identified benefits from the technology
acquisitions.
[0006] 2. Description of Related Art
[0007] Public sector organizations operate with different
priorities and pressures than those in the private sector.
Specifically, the public sector organizations are generally charged
with a specific mandate and utilize technology to help their
organizations operate within these frameworks. Typically, public
sector organizations usually cannot shift into new areas. A public
sector organization's mandate is politically directed and
prioritized with new initiatives and directions coming from changes
in government policy, approach and priorities. While maintaining
confidential or restricted-access information, the public sector
organizations are constantly challenged to be accessible, to be
open, and to provide access to its information to the public. With
human resource and personnel costs often being the primary cost
driver in the organization, a primary concern of the public sector
organizations is to deploy and manage resources economically and
efficiently as needed to achieve the mandates.
[0008] In addressing these pressures and priorities, public sector
organizations tend to focus on meeting their prescribed mandate;
controlling resources to stay within their budget authority;
optimizing the utilization of their resources--people, facilities,
and information; and providing information to other government
agencies and to the public on their programs and
accomplishments.
[0009] Thus, in managing their diverse organizations, public sector
entities face the constant pressure to reduce cost while delivering
higher value to the public. The public sector organizations are
pressured to reduce operational costs and complexities in order to
permit a higher percentage of resources to be dedicated for
delivering the front line work --meeting their mandate. Compounding
the complexity is a need to accommodate changes in programs,
priorities, and oftentimes, reorganization and consolidations with
other public sector entities. Overall, these pressures require
programs, systems and controls that ensure that the mandate is
being carried out and reported on with due regard for economy,
efficiency and effectiveness.
[0010] Several methods have been used to measure the benefits of
technology expenditures to a public sector entity. In one method,
an auditing approach has been used to document the potential
savings in these types of organizations. This approach usually
involves a "picture in time" type of measurement study where
functions are looked at in detail with the potential savings
estimated. The studies tend to be organizationally focused
meticulously detailing the potential savings throughout an
organization and its agencies. These studies tend to have
relatively high costs because of the time and expense needed to
document the operating areas and to create well-suited cost
measures that can be used as the basis for formulating the savings
for the particular entity. Once the snapshot has been taken, the
study tends to become a reference document. While taking an audit
or a snapshot-in-time can help to estimate the scope of possible
savings with a technology acquisition, the organization is left
with little direction on implementing the technology expenditure as
needed to achieve the desired goals. Unless there is a follow up
program that helps transition and manage the change to realize the
benefits, such studies simply become volumes that document a
theoretical potential. Unless the work is built on a framework that
will allow the organization to implement and manage the change,
little lasting value will have been done.
[0011] Another approach that has been used to measure the benefits
of technology expenditures is to employ industry-based business
practices as the framework for estimating the value of change. For
instance, businesses commonly use return-on-investment (ROI) tools
that attempt to estimate the benefits of technology expenditure as
realized through resulting decreases in costs (e.g., through lower
personal costs) or increased revenues (e.g., through increased
sales) In the context of the public sector organizations, this
approach attempts to quantify the benefits of technology
expenditure by applying industry-based business processes to public
sector organizations. This approach tends to focus more on the
operational business processes, but building such a framework
raises numerous issues for public sector organizations. The first
issue that immediately gives concern is that the business processes
in public sector tend to be very different as to how they are used
industry. While the two methods perform similar tasks, the two go
about executing those tasks very differently. Consequentially, an
industry-based business process view often does not work because
the business processes and rationale across public sector
organizations vary widely.
[0012] The second issue implicit in this approach is that not only
are industry business processes used, but also the measurement
metrics are based on industry standards. It is relatively easy in
private industry to develop a set of metrics that can be used to
measure the potential payoff from a technology acquisition. For
example, a business can focus on inventory costs, examine potential
reductions in inventory investment by, and value these savings at
their cost of capital, thereby creating a measure and a target for
the savings that the organization can attribute to the technology
acquisition. In doing so, the target can be based on a range of
metrics already available within their industry from similar firms
doing similar activities. Thus the organization can easily look to
existing metrics and targets on which to base a change strategy and
programs. This application of this approach applies to public
sector organizations is of concern since there are few generally
accepted metrics for business processes within the public sector.
Even if solid, comparable metrics could be devised, application of
the metrics to deliver savings complicates the problem.
Specifically, very few public sector organizations use the same
business functions and metrics. For instance, the cost of capital
may not be a useful metric to public organizations since the
capital supplied to the organizations tends to be operational,
budgetary funding that is fiscal year based. Likewise, reducing
inventory investment by some factor may not have as much value in
the public sector. Accordingly, there is a current need for
approaches tailored and refined for public sector needs.
[0013] The case for measuring the benefits of technology
expenditures can be made in the public sector, but it needs to take
a different approach to building the case from that used in
industry. As suggested above, it is rarely possible to use industry
metrics and port them over. The industry metrics generally do not
work since the tasks for the public sector organization generally
do not have parallels in industry. Nor do they have consistent
measurement bases--metrics across the public sector are often
inconsistent as there are generally few comparable organizations on
which a metric can be based. Finally, the majority of the cost
structure in public sector organizations tends to be human resource
and other people-related costs based since the cost of service
delivery tends to dominate the cost structure. The efficiency gains
in public sector from technology expenditures therefore tend to
come from enhanced utilization and productivity gains that augment
the delivery of increased and improved services to the public. For
instance, public sector organizations may move more of the back
office support chores to front line tasks, thus freeing up
resources to deliver better services within tight budgets. For
example, enhanced service delivery from technology efficiency gains
may permit a policing organization to transfer costs associated
with administration to those associated with police service
delivery; i.e., reduce the level of administration costs to free up
resources to support more police, more cruisers, better response
equipment, etc.
[0014] As described above, the potential benefits from technology
expenditure by a public sector entity cannot be easily measured
using a finite single point in time snapshot study approach.
Furthermore, these potential benefits do not appear overnight, but
instead, tend to take time to effect. Generally, instantaneous
overnight disruption in the public sector is not
acceptable--migrating to lasting change is the goal. Thus, the
focus for change in public sector can only come about if the
technology expenditure builds in both a vision or plan that
assesses the opportunity for benefits realization (i.e.: the
business case), integrates it with a technology implementation
program, and delivers a program to realize the benefits to effect
lasting change. Otherwise a stand-alone business case becomes an
exercise to secure funding rather than one of delivering lasting
value. For these reasons, developing the business case for
technology expenditures in the public sector must transition to a
benefits realization program that includes: (1) Documenting the
expected technology expenditure benefits for the enterprise; (2)
Integrating benefits realization with the technology expenditure
program; and (3) Building a sustainable benefits realization and
monitoring program.
[0015] For optimal effect, the approach should be built at the
outset at the beginning of the technology expenditure program. For
instance, if the technology expenditure includes the acquisition
and selection of new software, the other technology expenditure
should be integrated to the specifics of that software. The program
should be sustained with enhancements and developments through the
implementation of the other technology acquisitions. Once the
system has gone live, the benefits realization program needs to
have sufficient depth of tools and process so that the expected
change program can be monitored, and real values and benefits
delivered. The work should not stay as a theoretical framework
--real lasting value needs to be the result. Business case
development in the public sector needs to build a program of
sustainable continuous improvement so that the benefits can be
realized.
[0016] In summary, the development of an technology expenditure
business case for a public sector organization requires a
methodology that: (1) Is tailored to the needs of public sector
organizations; (2) Addresses public sector business functions from
their operational and organization perspective; (3) Develops
metrics that meet the needs for that specific organization; (4)
Starts the program at the beginning of the technology expenditure;
(5) Integrates the business case with the specific technology
acquisitions to be implemented; (6) Optimizes the measurement and
business process delivery throughout the implementation of
technology acquisition; (7) Implements a concrete benefits delivery
program; and (8) Implements tools and processes that can be used to
implement, monitor and measure the effect of change.
BRIEF SUMMARY OF THE INVENTION
[0017] In response to these and other needs, the present invention
provides a robust, fully integrated approach and a related system
for public sector technology expenditure realization. In
particular, the present invention offers a low risk, step-by-step
approach to developing a complete benefits realization program in a
public sector enterprise.
[0018] The present invention provides a public sector technology
expenditure benefits realization framework that offers an
unparalleled approach for addressing the very specific needs of
public sector organizations by combining the development of the
business case with technology implementation program and by further
integrating a sustainable long-term benefits realizations program.
Specifically, in one embodiment, the methodology of the present
invention integrates three steps: (1) A visioning phase for
creating the vision for the planned benefits; (2) An integration
phase comprising the integrating the planned benefits from the
technology expenditure; and (3) a realization phase during which
the public entity incorporates a sustainable benefits realization
and monitoring program. The three phases are preferably integrated
such that the results from the visioning phase provide input to the
integration phase that, in turn, develops the plans for the
realization phase.
[0019] The objective of the visioning phase is to develop a
framework on which a benefits realization program can be
implemented and to evaluate the opportunity for savings expected
from the technology acquisition. During the visioning phase, a
public sector entity examines its key operational processes,
relates these to the potential benefits and then evaluates the
potential savings to complete the business case. The visioning
phase includes the tasks of detailed functional mapping, the
development of value drivers, and the evaluation of benefits
potential.
[0020] In the detailed functional mapping, the organization uses a
public sector specific framework to map the major functions (also
referred to as business activities) carried out by the
organization. The organization then decomposes these functions into
major process groups. In turn, the organization decomposes the
process groups into their major processes and further decomposes
the major processes into various activities.
[0021] When developing value drivers, the organization develops
sources of potential benefits, i.e., the value drivers, for each
activity. The organization then relates the value drivers to
benefits achievable if the value driver is met to determine
transformation benefits. Subsequently, the organization relates the
transformation benefits to benefits that could be delivered by the
technology expenditures.
[0022] The organization may then evaluate potential benefits. For
each of the technology expenditure benefits, the organization may
benchmark the total cost for the technology expenditure. For each
benchmark, the organization assesses a target achievement level for
the benefit expected through the technology expenditure. The
organization can next assess a probability range of actually
achieving the target achievement level, and then calculates the
expected potential of the technology expenditure benefit for the
technology expenditure. The process results in a detailed business
case for the technology expenditure that as applied to the public
sector framework map.
[0023] As described above, a next main step after the visioning
phase may be is the integration phase. The objective of the
integration phase is to integrate and formalize the benefits
realization program with the technology acquisition and to develop
plans for realizing the benefits from the technology acquisition.
To do this, the organization develops and implements a concrete
program of tools, templates and monitoring processes to ensure that
the benefits transformation program can be undertaken. This
integration phase is started after the technology acquisition has
been selected to allow a full integration of the visioning phase
work to the technology acquisition. In an embodiment of the present
invention, the integration phase includes two major components, the
integration of a benefits framework and the development of benefit
delivery plans.
[0024] During the integration of a benefits framework, the
organization integrates the benefits delivery framework to the
selected technology acquisition and integrates the benefits
delivery framework to the planned scope and design of the
technology acquisition. The development of benefit delivery plans
generally includes the transfer of each expected benefit target
activity to individual Benefits Delivery Plans (BDP). Next, the
organization completes each of the BDPs with an appropriate
benefits delivery manager. The organization then integrates all the
BDPs to form a Organizational Benefits realization Program
(OBRP).
[0025] In the next step, the realization phase comprises a third
set of tasks in the methodology of the present invention. The
objective of the realization phase is to integrate and formalize
the benefits realization program in the organization. To accomplish
these objectives, the organization works to develop and implement a
concrete program of tools, templates and monitoring processes to
ensure that the previously developed BDPs are implemented across
the enterprise and then continuously monitored. This phase is best
started after selection of the technology acquisition to allow a
fine-tuning of the visioning phase work to the chosen technology.
The realization phase similarly includes two tasks, the
implementation of the BDPs and the use of a benefits realization
monitor.
[0026] During the implementation of the benefit delivery plans, the
organization formalizes the commitment for each BDP. The
organization then takes steps to ensure that each manager
implements their specific assigned BDP and understands the
requirements for that BDP. Furthermore, the organization acts to
ensure that desired progress is achieved and monitored. The
organization may also consolidate all the BDPs across the
enterprise, as necessary.
[0027] To use the benefits realization monitor, the organization
first implements the benefits realization monitor to track and
assess performance of the OBRP. Subsequently, the organization
documents metrics and, then, adjusts and tunes the business plan
changes.
[0028] In another embodiment, the present invention provides a
related system for implementing the above-described technology
benefits realization program.
DETAILED SUMMARY OF THE INVENTION
[0029] A more complete understanding of the present invention and
advantages thereof may be acquired by referring to the following
description taken in conjunction with the accompanying drawings, in
which like reference numbers indicate like features, and
wherein:
[0030] FIGS. 1-4B depict steps in a method for measuring and
realizing benefits to a public sector organization from technology
expenditure in accordance with embodiments of the present
invention;
[0031] FIG. 5 depicts a system for measuring and realizing benefits
to a public sector organization from technology expenditure in
accordance with embodiments of the present invention; and
[0032] FIG. 6A-6J depicts exemplary screen shots from the system of
FIG. 5 in accordance with embodiments of the present invention.
DETAILED SUMMARY OF THE INVENTION
[0033] As depicted in FIG. 1, the present invention provides a
public sector technology expenditure benefits realization method
100 that offers an unparalleled approach for addressing the very
specific needs of public sector organizations combining the
development of the business case with technology implementation
program and integrating a sustainable long-term benefits
realizations program. Specifically, the methodology 100 of the
present invention integrates three steps: A visioning phase 200 for
creating the vision for the planned benefits; an integration phase
300 comprising the integrating the planned benefits from the
technology expenditure; and a realization phase 400 during which
the public entity incorporates a sustainable benefits realization
and monitoring program. The three phases (200, 300, and 400) are
integrated such that results from the visioning phase provide input
to the integration phase, which subsequently develops the plans for
the realization phase.
[0034] The objective of the visioning phase 200 is to evaluate the
opportunity for savings expected from the technology expenditure
and to develop the framework on which a benefits realization
program can be implemented. In particular, the visioning phase 200
develops a business case. This business case then provides the
basis for implementing the benefits realization and
performance-monitoring program. Thus, the business case is
developed, and then, programs are implemented to ensure that the
benefits are actually delivered to the organization. In this way
the public sector organization's business processes are aligned to
meet the goals established for the technology expenditure.
[0035] The visioning phase 200 examines the key business functions
and processes, relates these functions and processes to the sources
of benefits potentially delivered by a technology expenditure, and
then evaluates the opportunity for savings within the organization.
As depicted in FIG. 2A, there are three major tasks in the
visioning phase 200, each of which generally builds on the work in
the preceding step. It should be appreciated however that, by using
a step-wise approach, the method 100 has the ability for the
organization to update and refine the work at any point in time,
even after the technology expenditure has been implemented. The
tasks for the visioning phase 200 are detailed functional mapping
(step 210), create value drivers (step 220), and evaluate benefits
potential (step 230).
[0036] During detailed functional mapping in step 210, the
organization develops an inventory of its business functions and
its major business processes. The goal is to detail the business
processes and tasks being carried out in the organization and to
develop parameters for potential savings in these tasks. The
strategic management of a public sector organization generally
focuses on program delivery and resource management activities.
From a management perspective, the organizations carry out a number
of business functions across their organization. Within each
function, there are a number of major processes that are managed.
Improvements in these functional processes and related operations
can deliver savings to the organization. It is the opportunity for
improvements in the functional processes that need to be addressed
as part of the business case assessment for technology
expenditures. Accordingly, as depicted in FIG. 2B, the detailed
functional mapping in step 210 may be performed in four tasks:
functional mapping in step 211, process group mapping in step 212,
process mapping in step 213, and activity mapping in step 214. In
step 211, functional mapping, the organization maps its major
functions and business activities. Then, in the process group
mapping of step 212, the organization decomposes the functions into
process groups. During the process mapping of step 213, the
organization further decomposes the process groups into the major
processes. Subsequently, in the activity mapping of step 214, the
organization decomposes the major processes into the constituent
activities.
[0037] In one embodiment of the present invention, the functional
mapping in step 211 uses the following twelve strategic functions
listed and defined in TABLE 1 and, then, maps these twelve
functions to the complete public sector organization, adjusting
them as required. Larger organizations tend to perform all twelve
functions, while smaller, mission-specific organizations may
not.
1TABLE 1 Function Summary Processes Groups Strategic Management
strategic planning Organizational Strategy and program Program
Formulation & formulation Planning Program Management Corporate
Intelligence Financial Management management of Planning &
Budgeting budgeting, financial Financial Accounting and costing
Cost Accounting processes Cash Management Travel Management Project
Accounting Grants Management Revenue Management revenues from
taxes, Taxpayer Records permits, fees and Management other sources
Forms Management Tax Assessment Tax Billing Non-tax Revenue Revenue
Accounting Payments & Collections Compliance Human Resource
human resources Organization Management Management and positions
Position Management management Recruitment Personnel Admin Time
& Attendance Compensation & Benefits Admin Payroll
Personnel Development Training Resource Management resources
Program Management deployment and Program Evaluation utilization
Resource Utilization Performance Measurement Procurement &
Supply controlling Procurement Control Chain Management procurement
and Tender Management related inventory Contract Management
Inventory Control Facilities & Asset managing facilities, Asset
Management Management assets, property Facilities & Equipment
and leases Fleet Management Real Estate Asset Disposal Corporate
Data managing, securing Records Management Management and
exploiting Workflow critical data Data warehouse/ Knowledge library
Customer Relationship managing and Management maintaining
relationships with customers Program and Case Managing various
Management programs and cases being analyzed through the ERP
Systems Management information IT Strategy & Planning
technology (IT) IT Resourcing strategy, infra- Operations
structure, resources Access & Security and systems e-Government
enabling the world e-Access Management of e-Government e-Support
e-Revenue e-Procurement e-Employee e-Work
[0038] As summarized in Table 1, there are a number of processes
groups within each function that are managed and focus the
operations of the public sector entity. These known processes
represent the major business activities carried out by the
organization. As such, the processes groups and the processes in
these groups represent the operational business functions of the
enterprise. Thus, these functions generally represent the areas
that may be impacted through the implementation of a technology
acquisition, and these areas are the source of the potential
payback. Again, a public sector organization may not perform all
the processes, but these processes apply to most public sector
organizations. These functions are described in greater detail
below.
[0039] Thus, once the functions are mapped, the organization then
further decomposes the functions into process groups in step 212.
The process groups represent the major business processes that are
carried out within the strategic function. For example, as
indicated in Table 1, an organization may decompose the Financial
Management function into various process groups such as Budgeting,
Financial Accounting, Cost Accounting, etc. The purpose of the
process group mapping in step 212 is to gather and document all the
major processes carried out in the organization and relate these to
the functional areas. Obviously, the process groups listed in Table
1 may be expanded or adjusted as necessary. The organization may
also relate the processes groups to various operational and
organizational areas. As a result, if specific organizations and
entities only carry out certain processes, these are documented as
part of this work. These process groups are described in greater
detail below.
[0040] Once an organization has the processes groups documented,
then the organization may work on the next level of detail. The
organization may then decompose the process groups into the
processes carried out within each of the process groups, step 213.
Again, the organization may expedite the work by using the unique,
predefined set of processes, as specified below, and adjusting them
as necessary. The various processes associated with each process
group (and each function) are now described.
[0041] As provided above in TABLE 1, strategic management generally
includes process groups related to the strategic planning and
management for the organization and generally includes the
processes of organizational strategy; program formulation &
planning; program management; and corporate intelligence. The
process group of organizational strategy relates to the alignment
of the organization to its mandate and includes the processes of
defining the organization role, government relationship management,
community relationship management, and strategic planning. Another
process group of program formulation and planning deals with
planning and funding of major programs and includes processes, such
as program design, formulation, and goals; planning and
simulation/modeling; and the program submission/approval.
Similarly, the program management process group relates to ensuring
that the public sector organization's mandate is being met and
includes the processes of program tracking and reporting; and audit
and compliance. Continuing with the process groups in strategic
management, the corporate intelligence process group relates to
ensuring that corporate data is maintained, controlled, and
secured. The corporate intelligence process group then includes the
processes of data management, data access, and performance
measurement.
[0042] Returning to the Table 1, the function of financial
management generally includes those activities involved in
budgeting and related financial management and control of the
organization. The process group of planning and budgeting includes
processes (such as planning, budget development, budget
distribution, budget control, and variance analysis) that deal with
developing and implementing budget controls. Another process group
in financial management is financial accounting, which relates to
maintaining the general ledger and accounting transactions.
Processes in financial accounting include general ledger and
sub-ledger management, fund accounting, receivables management, and
payables management. The process group of cost accounting deals
with the costing of programs, projects and activities, such as the
processes of cost accounting, cost recovery accounting, shared
program delivery, activity costing, and cost allocations. The cash
management process group deals with cash flow and cash management
and includes the processes of funds management; cash control &
cashiering; foreign exchange management; liquidity management;
investment & debt management; and credit risk management.
Continuing with the process groups in financial management, travel
management deals with employee travel and related expenses, such as
the processes of business trip administration; travel planning,
bookings; travel approval and workflow; funds commitment; and
travel expenses. Similarly, the process group of project accounting
deals with project and related cost accounting, including the
processes of project planning & budgeting; project control,
variance analysis; project accounting; and project billing &
cost recovery. Likewise, the process group of grants management
deals with managing and administering grants programs, and includes
processes related to grants & subsidies requests; approval and
budgeting; and accounting.
[0043] Continuing with Table 1, the revenue management function
relates to efforts by many public sector organizations take in some
form of revenue. These public sector revenues may include revenue
from income taxes, sales taxes, fees, licenses, permits, penalties,
joint funding programs, grants, and other non-tax revenue such as
leases, property disposals, etc. The functional processes
associates with revenue management help a public sector
organization lower program costs and to improve revenue
collections.
[0044] Revenue management potentially includes numerous process
groups. One of the process groups associated with revenue
management, taxpayer records management, relates to managing tax
payer records and generally includes the processes of taxpayer
records management, debtor records management, and licensing record
management. Similarly, the forms management process group deals
with the distribution of tax forms, permits, licenses, etc and
includes the processes of forms inventory and forms distribution.
Another revenue management process group, tax assessment, relates
to calculating and assessing taxes and includes the processes of
tax calculation, tax assessment, and returns processing. Likewise,
the process group of tax billing deals with billing taxpayers.
Another process group relates to non-tax revenue (NTR) and includes
processes concerning permits & fees; other goods &
services; and other NTR revenues. Another process group, revenue
accounting, deals with the accounting for various types of revenues
such as to tax revenue distribution and non-tax revenue
distribution processes. Continuing with revenue management, the
process group of payments and collections deal with collecting
taxes and non-tax revenue and includes the processes of receivables
management, dunning & penalties, and collections & write
offs. In the same way, the compliance process group includes
processes such as of case management, dispute resolution,
compliance enforcement, and refunds/credits that deal with revenue
related compliance.
[0045] Usually, the largest and most complex structure within a
public sector organization relates to Human Resources (HR).
Typically, public sector human resources management is complex and
requires intensive resources to handle. Thus, there can be
significant opportunities to effect savings in the HR management
functions. Continuing with Table 1, another set of functional
processes relate to human resources management. One of the process
groups, organization management, relates to the personnel
organization structures and includes and includes the processes of
organization structures and reorganization planning. Another
process group, position management, deals with position
administration and may includes several such as position
administration; position creation, pricing, and approval; position
planning, funding, and budgeting; and cost allocations. The
recruitment process group deals with recruiting new employees and
includes processes addressing with position advertising, applicant
management, candidate selection, and hiring. In the same way, the
process group of personnel administration deals includes processes
related to personnel actions, records management, salary
administration, pension management, and general employee health
& welfare. Continuing with Table 1, the time & attendance
process group deals with tracking employee time and attendance, and
it generally includes time recording & evaluation, absence,
leave & attendance, work schedule & shift planning, time
availability management, and time recording interfaces. Another
process group in the field of human resource management relates to
the process of compensation & benefits Admin that deals with
employee benefits and includes processes of benefits &
allowance eligibility, benefit enrollment, deduction calculation,
separation benefits & retirement, and incentive management.
Likewise, the payroll process group deals with pay and payroll
accounting, including processes related to payroll processing, pay
scale/rate changes, payment issuances & recovery, and
retroactive pay. Continuing with the process groups in human
resource management, the personnel development process group deals
with personnel development and career planning, and includes
processes addressing development planning, requirements &
tasks, qualifications & skills, career path planning, and
succession planning. Furthermore, the training process group deals
with employee training and development. Relevant processes to the
training process include training & event management, employee
registration, appraisal administration, performance management, and
knowledge management.
[0046] Continuing with Table 1, another set of process groups
relate to resource management. The functional processes in resource
management are closely related to those in the above-described
human resource management. In particular, public sector
organizations usually have process group concerning the review and
monitoring of the deployment of resources across the organization.
With an almost mandatory requirement to stay within their budget
envelopes, organizations spend considerable effort to ensure that
operations are kept financially sound, that budgets adhered and
that resources are properly deployed to approved programs. As
provided in Table 1, the resource management function includes a
program management process group that deals with resource
allocation to programs, generally including the processes of
program planning, program design, and program-to-mandate alignment.
Continuing with the process groups in resource management, the
program evaluation process group deals with evaluating programs to
their mandate and typically includes the processes of mandate
assessment, program costing, and variance analysis. Similarly, the
resource utilization process group deals with resource utilization
and productivity, and often includes the processes of resource
deployment, activity costing, and resource utilization. Likewise,
the performance measurement process group deals with program
performance measurement, such as the processes of program
effectiveness and variance analysis.
[0047] Returning to Table 1, another function of importance in a
public sector entity is procurement management. Procurement is a
major function within public sector organizations that spend large
amounts on a diverse portfolio of good and services. Paramount to
this function is the need to ensure that good processes are in
place to control spending, to meet budget requirements and to
ensure a fair and competitive procurement process. One relevant
process group, procurement control, deals with general procurement
and generally includes processes related to demand management;
source selection management; purchase order processing; routing
& approval related to workflow; goods & service receipt and
quality assurance; invoice verification & approval; and
procurement card processing. Another process group, tender
management, deals with creating and managing tenders and
Requests-For-Proposals (RFP), and this process group generally
includes the processes of bid/RFP development; bidder list and
catalog integration; bid/RFP advertisement; change management;
bid/RFP responses; and evaluation of Bids and subsequent awards.
Continuing with tender management function, the process group of
contract management relates to general contract administration and
includes the processes of contract admin, negotiation &
release; contract pricing, terms & conditions; routing &
approval; subcontracting; change order management; the monitoring,
performance, and closeout of contracts; policies, standard clauses
& forms drafting; and closeout activities. In another process
group, inventory control, deals with acquiring, controlling and
issuing inventory and covers processes related to stock quantity
& value management; goods movements; physical inventory;
materials planning; warehouse management; distribution planning
& management; and allocation & deployment.
[0048] Public sector organizations manage a large number of assets
and facilities. Effective program control on this function can
deliver significant efficiencies to the organization. As provided
above in Table 1, several of the process groups relate to the
function of facilities & asset management. In particular, the
process group of asset management addresses and includes processes
related to fixed asset accounting, fixed asset inventory
management, leasing, and seized & abandoned goods. Likewise,
the facilities & equipment process group deals with managing
and accounting for facilities and equipment and includes processes
related to facility & equipment master data, preventative
maintenance & overhaul, maintenance & integrated work
orders, equipment history tracking, and warranty management.
Similarly, the fleet management process group deals with the
management of vehicle fleets and includes the processes of fleet
master data, fleet maintenance & overhaul, fleet
planning/scheduling/dispatching, and warranty management.
Continuing with the facilities and asset function, the real estate
process group relates to real estate and property management and
includes processes dealing with portfolio management, retail
locations, kiosks and terminals, accounting & investment
planning, construction project management, building maintenance,
space & room management, and rent management. Another process
group, asset disposal, relates to the disposition of assets and
includes the processes of asset identification, disposal
management, valuation adjustment, and the disposal of third party
assets.
[0049] Another functional concern facing public sector
organizations is that they often maintain large amounts of both
current operational data as well as historical and or public record
information. As a result, the public sector organizations are often
challenged by the pressures caused by rapid accessibility to the
data, the cost of maintaining ever-increasing volumes of data and
the need to deal complex access and security demands.
[0050] Thus, returning to Table 1, another set of processes
evaluated in the present invention relate to the function of
corporate data management. One of these process groups, records
management relates to the managing corporate records and frequently
includes the processes of record structure definition &
hierarchy, access authorization, and form generation &
administration. Similarly, the workflow process group deals with
automating the flow of documents and approvals and may include
processes related to event & status driven item processing,
calendaring, proxies & substitutions, shared & personal
notes, e-mail & image enabled. Still another process group
deals with a data warehouse or knowledge library and the building
of this data information warehouse. This data warehouse process
group may involve processes in structured information archiving;
business content & performance; external and user specific
data; prepared & ad-hoc analysis; data modeling; extraction
& mining; and business process performance.
[0051] Yet another concern facing public sector organizations is
that they often have demanding Information Technology (IT)
requirements. Within this context, public sector organizations
develop long term strategies that meet operational needs while, at
the same time, these organizations are challenged with
organizational changes, by program priority shifts, and in their
ability to acquire and staff IT resources. Significant security and
data access restrictions also play a large part in the function of
systems management.
[0052] Several of the process group relate to this function of
systems management, as detailed above in Table 1. One of the
systems management-related process groups deals with planning,
developing, and managing an IT strategy. Among the processes that
may be included in the IT strategy development and planning are
strategy development, implementation framework, long-range
planning, and actual policy development. Another related process
group addresses IT resourcing programs and include processes geared
to resource planning, resource acquisition, skills planning &
assessment, resource deployment, and resource related project
accounting. Similarly, another process group deals with operating
IT systems and programs, and processes relates to the IT operations
process group include systems operations, backup, support, data
security, and data recovery. In the same way, the process group of
access and IT security includes processes addressing electronic
signature and public key infrastructure (PKI), as well as security
standards.
[0053] Another primary function of public sector organization is
e-government management. This set of functional processes relates
to the presence of the public sector organization on the Internet.
The Internet offers unique opportunities and increasing demands for
the delivery of government services. Typically, new technology
acquisitions need to integrate with and e-government initiatives to
minimize duplication of processes and to optimize the effectiveness
of the delivery.
[0054] As provided in Table 1, one process group related to
e-government management is e-Access, which deals with providing
public Internet access to information and services and generally
includes processes related to access to information and constituent
self-service. Another process group, e-Support, relates to dealing
with public access to benefits and support programs and may include
specific processes in the fields of child support, health,
employment, and education. Continuing with e-government function,
the process group of e-revenue deals with revenues, licenses and
fees and may include processes in the fields of tax filing, tax
collection, licensing and permits. Similarly, the process group of
e-procurement deals with expanding the use of the Internet for
procurement tasks, and this process group may include various
processes related to access to government business, government
e-procurement, government-to-government transactions, and
government-to-business transactions. Another e-government process
group relates to e-Employee and generally deals with providing
public sector employees with self-service functionality an embodied
in the processes of HR records, leave balances, and Time and
attendance. Still another process group in the function of
e-government relates to e-work, which deals with providing
employees remote work access and, thus, may have related processes
of remote function access and security.
[0055] Once the organization has mapped and documented its
functions, process groups, and process (respectively, step
211-213), the organization may further decompose the processes into
the major activities carried in each process, step 214. For
example, the process of Budget Development could have activities
such as Prepare Budget Guidelines, Prepare Budget, Approve Budget,
etc. To accelerate the process of decomposition, the organization
may employ a predefined set of activities for each of the
processes. Because of the voluminous nature of a composite list,
all of the possible activities associated with each process are not
listed in this application, but it should be appreciated that
various activities may by selected as needed to classify the
actions of the organization.
[0056] By the end of the visioning stage 210, the organization will
have documented its major functions, the processes that are being
carried mapped to the groups and entities that are carrying out the
processes. This sets the stage for the next set of
tasks--evaluating the activities within each process to determine
how a technology acquisition can deliver value to the public sector
enterprise.
[0057] Returning to FIG. 2A, the next step in the technology
benefits realization method 100 is to create value drivers, step
220. The purpose of creating value drivers in step 220 is to create
a list of all the potential value drivers for each activity in each
process. These are then related to the potential that could be
delivered with a technology acquisition. Value drivers are changes
within a process that could result in a benefit through
streamlining the process, lowering its overall cost, or enhancing
the efficiency and effectiveness of delivery. As depicted in FIG.
2B, the creating of value drivers in step 220 generally includes
three steps: development value drivers in step 221, development
transformation benefits in step 222, and development technology
expenditure benefits in step 223.
[0058] In the development of value drivers in step 221, the value
drivers represent a statement of benefit, some value will be
derived in the benefit is delivered. Thus In the development of
value drivers in step 221 comprises defining the values drivers for
each activity, as defined in step 214. To carry the development of
value drivers in step 221, the organization examines each process
and documents those areas where benefits can be derived. For
example, in the Budget Distribution process, there could be a value
driver such as "Reduce Time To Release". By obtaining an
improvement in this driver, i.e.: actually reducing the time it
takes to release the approved budget throughout the organization, a
benefit will accrue. Thus value accrues to the organization when a
benefit is achieved. In step 221, the organization actually
documents where value can be potentially created in a process.
[0059] In addition, to ensure that strategic enterprise goals are
being addressed, every value driver is preferably related to the
enterprise's strategic business drivers. This directly links all
opportunities for improvement in technology expenditure program to
the goals and business drivers of the enterprise at the strategic
level. Thus the technology expenditure business case and program is
fully integrated to the strategic plan of the enterprise.
[0060] The next stage of the method 100 is to develop
transformation benefits in step 222 that detail the changes or
transformations that will result if the value driver is achieved.
Using the example value driver in Budgeting of "Reduce Time To
Release" of the approved budget, a transformation benefit, will be
that expenditures within the organization will be subject to
approved budget controls sooner than otherwise would be expected,
thereby improving overall financial control within the
organization.
[0061] Subsequently, the development of technology expenditure
benefits in step 223 relates the transformation benefits to those
that can be derived by implementing a technology expenditure,
identifying the potential range of benefits from the technology
expenditure. To do this, the organization carefully assesses each
transformation benefit to the potential of it being realized
through the technology expenditure. This is critically important as
it helps to define the scope of the technology expenditure and the
opportunity that it offers for change to the public sector
organization. However, it is important to note that not every
transformation benefit can be created from the technology
expenditure. While a majority of the benefits can be, a number of
the benefits may have to be derived from an alternative
approaches.
[0062] The value drivers are the heart of defining the benefits
realization potential for the technology expenditure. After the
creation of the value drivers in step 220, the organization has
documented the sources of potential benefit that the technology
expenditure could deliver in the context of the processes being
carried out by that particular public sector enterprise.
[0063] Continuing with FIG. 2A, the next task in the visioning
phase 200 is to evaluate benefits potential in step 230. The
evaluation of the benefits potential in step 230 establishes the
potential and expected savings that can be attributed to the
technology expenditure. To do this, the organization measures the
cost of performing specific activities and relating theses to
potential savings from the technology expenditure. The evaluation
of the benefits potential in step 230 generally includes the four
tasks of benchmarking total cost in step 231; developing
achievement target in step 232; assessing probability range in step
233, and determining expected benefit in step 234.
[0064] In the benchmarking of total costs in step 231, the total
enterprise cost for a process is assessed so that the organization
may measure the enterprise cost for an activity. For some
processes, the benchmarking of total costs in step 231 is not be
too difficult. However, the benchmarking of total costs for others
processes may be challenging, and organization may use cost
estimates. In the benchmarking of total costs of step 230, the
organization documents the assumptions behind the total cost
estimate and what components are included or excluded.
[0065] After the enterprise cost is estimated, the organization
performs the next task of developing an achievement target in step
232. In step 232, the organization sets a target of savings in an
activity's cost. The setting of a savings target generally includes
developing sources and the estimates for the savings. The
assumptions may also be documented and adjusted as factors are
fully developed.
[0066] The next task in the evaluation of benefits potential in
step 230 is to assess probability range in step 233. During the
assessment of a probability range in step 233, the organization
sets a probability range for achieving the target. The organization
may use a range of profiles so that a range of benefits can be
assessed. The assessment of a probability range assists the
benefits delivery planning process by helping to make the plans
more realistic and achievable.
[0067] Continuing with the evaluation of benefits potential in step
230 as depicted in FIG. 2D, the organization determines expected
benefit in step 234 by calculating a range of potential benefit by
activity. The expected ranges of benefits are then calculated for
each expected technology expenditure benefit. Then, organization
calculates the total benefit expected.
[0068] After the completion of the evaluation of benefits potential
in step 230, the organization has defined the range of savings
possible through changes in processes and activities, which should
be achievable with the technology expenditure. This range of
savings sets the stage for the technology expenditure by defining
the goals and the potential for savings to be delivered. The next
stage is to select the specific technology expenditure in step 101
and then to fine-tune and integrate the benefits realization
program to the selected system. In the next phase of this work, the
benefits delivery plans are completed so that an overall benefits
realization program built for the organization. The process
continues to ensure that a viable and workable program is
implemented to deliver results to the organization.
[0069] Returning to FIG. 1, the technology expenditure benefits
realization method 100 continues with the integration phase 300.
The objective of the integration phase 300 is to integrate the
benefits realization program into the technology expenditure design
and development program. In this way, the technology expenditure
integrates with the business case framework. In doing so, the
technology expenditure realization method 100 helps to ensure that
the benefits transformation program can be undertaken and
effectively structured in the organization when the new systems and
business processes are implemented. The integration phase 300 is
started after the technology expenditure has been selected to allow
a fine-tuning of the visioning phase in step 200 to work to the
chosen technology expenditure.
[0070] As depicted in FIG. 3A, the integration phase 300 generally
includes two primary tasks, the integration of benefits framework
in step 310 and the development of benefits delivery plans in step
320. The integration of benefits framework in step 310 seeks to
ensure that the source of the technology expenditure benefits
identified in the visioning phase 200 will be possible and achieved
with the selected technology expenditure from step 101 and the
scope of the implementation being planned. As illustrated in FIG.
3B, the integration of benefits framework in step 310 generally
includes two steps, (1) the adjusting to the technology expenditure
in step 311 to adjust the planned framework to selected technology
expenditure; and (2) integration with technology expenditure
implementation in step 312 to integrate the framework to the design
of the technology expenditure.
[0071] In the adjustment to technology expenditure in step 311, the
organization adjusts the previously identified technology
expenditure benefits from step 200 to the technology expenditure
selected in step 101. Since technology expenditure may cover
different functionality and processes, the organization may
eliminate those areas not specifically covered in the technology
expenditure and hence the technology expenditure program. For
example, if improved processes are anticipated in asset accounting,
these benefits may be removed from the technology expenditure
benefits realization program if the selected technology expenditure
from step 101 does not offer this functionality.
[0072] Continuing with FIG. 3B, the organization next integrates
the benefits from the visioning phase 200 with technology
expenditure implementation, step 312. The integration with
technology expenditure implementation in step 312 involves tuning
the technology expenditure benefits realization program to the
initial design or blueprint that is expected as part of the
technology expenditure implementation. In many cases, the
technology expenditure design being planned does not just focus on
the expected benefits and addresses certain functionality needed by
the enterprise. As a result, some of the expected benefits may not
be realized initially since the technology expenditure scope may
not involve implementing certain expected functionality in the
first implementation. As a result, those expected benefits would
not occur until a later stage. These benefits should be removed
from the technology expenditure benefits realization program and
deferred for following implementations. In conclusion, the
technology expenditure benefits realization program then is tuned
to the specific technology expenditure selected in step 101 and the
program being planned.
[0073] Thus, the technology expenditure benefits realization
methodology 100 integrates the planned benefits realization program
with the actual technology expenditure implementation project. The
technology expenditure benefits realization methodology 100 does so
by aligning the technology expenditure Benefits planned for process
tasks with the business processes being developed and designed in
the technology expenditure program. In doing so, the technology
expenditure benefits realization methodology 100 provides
assistance to the technology expenditure program by helping it to
ensure that those areas that offer high potential benefits are
being addressed as part of the implementation. As the technology
expenditure design progresses, the benefits program is tuned,
updated and aligned to the technology expenditure program. Through
this approach, the organization can ensure that the benefits
expected for the technology expenditure program, and on which it
will have been partially based, are aligned and synchronized with
the program as it evolves. This integration of the business case to
the technology expenditure program and the subsequent benefits
realization program is a unique feature of the technology
expenditure benefits realization methodology 100.
[0074] At this point, the areas of potential benefits have now been
identified in the vision phase 100, the technology expenditure has
been selected in step 101, and the benefits potential has been
tuned to the selected technology expenditure in step 310. Referring
again to FIG. 3A, the next step in the integration phase 300 is to
develop benefits delivery plans, step 320. In developing a benefits
delivery plans in step 320, the organization develops an
implementation framework with detailed plans so that the benefits
can be realized.
[0075] The steps 321-323 in developing benefits delivery plans in
step 320 are depicted in FIG. 3. The first step is to develop
detailed benefits delivery plans in step 321. Next, the
organization approves and formalizes the plans in step 322 and
forms an organizational benefits program that consolidates the
plans in step 323.
[0076] The benefits delivery plans (BDP) developed in step 321
include each of the individual technology expenditure benefit
opportunities identified in the visioning phase 200. The BDP thus
generally include business change details, expected level of
changes, stakeholder analysis, measurement criteria, timing,
responsibility, assumptions, etc.
[0077] Once each individual BDP has been completed, each plan needs
to be reviewed and approved by the organization in step 322.
Preferably, approval is by both an individual responsible for
managing each plan and delivering the results, as well as by an
overall manager for the entire benefits realization program. The
formalization and approval of each plan following the review and
approval of the BDPs in step 322 generally is an important part of
developing acceptance, participation, and support to the
program.
[0078] All the individual plans are then integrated into a
consolidated plan, an Organizational Benefits Realization Program
(OBRP), in step 323. In forming OBRP in step 323, the organization
preferably resolves overlaps or duplicates. Furthermore, the OBRP
formed in step 323 is preferably integrated enterprise-wide so that
the complete framework for implementing and delivering the
technology expenditure benefits. Formation of the OBRP formed
generally includes the reviewing of each plan, meeting the steps in
the technology, addressing any overlaps, ensuring that the
identified technology expenditure benefits have been covered, and
then integrating the plans together. The OBRP may then be adjusted
for a subsequent startup of the technology expenditure, allowing
for any conversion processes, any new learning, and any efforts
taken to stabilize the organization's system before productivity
gains are accrued.
[0079] Following the visioning and implementation phases 200 and
300, the organization has created in individual benefits delivery
plans and an integrated enterprise-wide organizational benefits
realization program. As depicted in FIG. 1, the organization next
implements the technology expenditure in step 102 and, then,
formalizes and integrate the benefits realization program across
the enterprise in the realization phase 400.
[0080] The realization phase 400 is designed to ensure that the
benefits delivery plans are implemented and progress is monitored.
To do this, the organization develops and implements a program to
ensure that a benefits transformation program can be undertaken and
then continuously monitored. Accordingly, realization phase 400
generally begins after selection of the technology expenditure in
step 101 to allow for a fine-tuning of the visioning phase 200.
[0081] As illustrated in FIG. 4A, the realization phase 400
includes the steps of implementing benefits plans in step 410 and
monitoring of benefits realization in step 420. With the completion
and approval of the plans, the benefits plans are implemented in
step 410 throughout the organization. Depending on the size and
complexity of the organization, there may be a lot of effort
required to implement the complete set of benefits delivery plans
in step 410. Often, the organization assists managers in working
with the plans.
[0082] Subsequently, the organization implements mechanisms to
measure, monitor, track, and review accomplishments to monitor
benefits realization in step 420. With the detailed plans approved
and in place after the visioning and integration phases in steps
200 and 300 and following the implementation of the technology
expenditure in step 102, the organization measures and monitors the
progress being made on the plans to assure achievement of the
desired benefits. As illustrated in FIG. 4B, the monitoring of the
benefits realization in step 420 may include the tasks of benefits
delivery monitoring in step 421 and the adjusting and tuning of the
technology expenditure in step 422.
[0083] The Benefits Delivery Monitor (BDM) in step 421 is a formal
approach designed to monitor the progress of the individual BDPs
and the overall success of the OBRP. The BDM generally comprise of
a set of tools and templates designed to track each BDP, to assess
each BDP, and to monitor progress to achieving expected goals. The
results are then consolidated to a review of the progress of the
OBRP and the benefits accruing to the organization.
[0084] Continuing with FIG. 4B, a particular implementation of the
technology expenditure may be adjusted and tuned in step 422 as
needed to achieve the desired benefits. The adjustment and the
tuning of the technology expenditure in step 422 typically include
processes to allow the implementation to be adjusted and tuned as
the business planning cycle adjusts the organization's plans and
priorities. As the scope of the technology expenditure is changed
through new and adjusted functionality, then the Benefits
realization Program should be adjusted and tuned to address the
changes. Adjustments are made to address changes in the cost to
program, differences in the implemented scope or functionality,
differenced in how the system and individual processes are used,
rate of user acceptance, changes in assumptions, etc. In this way
the technology expenditure becomes a "living" process constantly
delivering value to the public sector enterprise.
[0085] In summary, the realization phase 400 delivers a unique
framework for benefits realization in the public sector, by
providing a framework for planned and lasting change and for
realizing benefits from a technology expenditure. Not only does the
realization phase 400 complete a detailed business case, but it
also implements a program to ensure that the benefits are delivered
over time to the organization. In addition, it allows the
technology benefits realization process to be tuned and adjusted to
the evolution in the enterprise and changes in technology
expenditure.
[0086] Technology Benefits Realization System
[0087] In another embodiment, the present invention provides a
technology benefits realization system 500. The technology benefits
realization system 500 generally automates the steps of the
technology benefits realization method 100, namely the visioning,
integration, and realization phases 200, 300, and 400. In one
embodiment, the technology benefits realization system 500 is a
software tool that is used to help a public sector enterprise
manage the technology expenditure benefits realization framework.
As depicted in FIG. 5, the technology benefits realization system
500 may include a visioning module 510, an integration module 520,
and an optional realization module 530. These modules 510-530 may
be software programs or hardware components configured to implement
the steps of method 100, as presently known.
[0088] The technology benefits realization system 500 generally
includes a multi-user database. Furthermore, the technology
benefits realization system 500 may be pre-configured with numerous
processes specific to public sector organizations, thereby offering
major efficiencies and cost savings for building the business case.
The technology benefits realization system 500 may further be
customizable and deployable for any public sector project. These
and other aspects of the technology benefits realization system 500
are described in greater detail below.
[0089] Overall, the technology benefits realization system 500
helps to document the rationale and business case for the
technology expenditure. The technology benefits realization system
500 further integrates with the technology expenditure program to
transform the goals of the business case to benefits delivery
plans. Once the technology expenditure program is implemented, the
technology benefits realization system 500 continues to provide the
planning and control mechanism for sustaining and monitoring change
throughout the enterprise.
[0090] As described above, the technology benefits realization
system 500 may be pre-configured with hundreds of processes related
to the public sector organizations. In this way, the technology
benefits realization system 500 offers significant productivity and
a related lowering of cost in building a business case framework.
As depicted in the display 600 of FIG. 6A, the technology benefits
realization system 500 may support the key functions for public
sector enterprises. Similarly, the technology benefits realization
system 500 may present to a user one or more process groups for
each function, as depicted in display 610 in FIG. 6B. The user may
then select from the displayed functions when defining the value
drivers for the organizations. In the same way, the technology
benefits realization system 500 may present to the user one or more
processes for each process group, as depicted in display 620 in
FIG. 6C, and one or more activities for each process, as depicted
in display 630 in FIG. 6D. For each activity, the expected
enterprise cost and the targeted savings for activity can be
documented, as generally depicted in display 640 and 650 in FIGS.
6E-6F, respectively.
[0091] Subsequently, user may associate value drivers with each
activity, as illustrated in display 660 of FIG. 6G. The value
drivers can then be linked to the Strategic Business Drivers from
the enterprise's Strategic Plan, as illustrated in display 670 of
FIG. 6H. Within each Value Driver, the potential Transformation and
technology expenditure benefits can be developed, as illustrated in
display 680 of FIG. 6I. Then, each activity benefits realization
plans can be built to integrate the benefits program to the
technology expenditure and then to monitor enterprise performance
against each plan, as illustrated in display 690 of FIG. 6J.
[0092] Thus, the technology benefits realization system 500 is a
comprehensive tool designed to significantly assist public sector
organizations in their quest to successfully implement a technology
expenditure. The technology benefits realization system 500
provides a discipline and structure to developing the business
case. By automating the process and by providing defined activities
to define value drivers, the technology benefits realization system
500 can dramatically lower the cost and complexity of completing
the business case as it comes pre-loaded with numerous processes
and activities specifically related to public sector organizations.
Furthermore, the technology benefits realization system 500
integrates the business case framework with the technology
expenditure and provides the framework for developing and
implementing plans and then monitoring the success of achieving
planned results, as described above.
Conclusion
[0093] The foregoing description of the preferred embodiments of
the present invention has been presented for the purposes of
illustration and description. It is not intended to be exhaustive
or to limit the invention to the precise form disclosed. Many
modifications and variations are possible in light of the above
teaching. For instance, the method of the present invention may be
modified as needed to incorporate new communication technology,
networks, and protocols as they are develop. It is intended that
the scope of the invention be limited not by this detailed
description, but rather by the claims appended hereto. The above
specification, examples and data provide a complete description of
the manufacture and use of the composition of the invention. Since
many embodiments of the invention can be made without departing
from the spirit and scope of the invention, the invention resides
in the claims hereinafter appended.
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