Information Technology (IT) is a significant component of capital spending for most companies, representing typically 50 % to 75 % of total expenditures. Benefit Realization Management (BRM) is an approach used to identify, prioritize and optimize business benefits arising from IT projects, which cannot be done effectively through traditional financial techniques. It is also known as value management and is an excellent process for determining optimal investments in infrastructure, general IT, and support services. This research is very valuable on its own and is also an excellent complement to other technology/market research as an aid in the technology investment decision process.

1. Market Analysis and Benefit
Realization Management (BRM)
July 2011

2. Overview:
Information Technology (IT) is a significant component of capital spending for most companies, represent-
ing typically 50 % to 75 % of total expenditures. Benefit Realization Management (BRM) is an approach
used to identify, prioritize and optimize business benefits arising from IT projects, which cannot be done
effectively through traditional financial techniques. It is also known as value management and is an excel-
lent process for determining optimal investments in infrastructure, general IT, and support services.
This research is very valuable on its own and is also an excellent complement to other technology/market
research as an aid in the technology investment decision process.
Audience:
 Anyone involved in IT, infrastructure, network equipment, software, application (etc.) investment deci-
sions, business case development, etc.
Table of Contents:
Chapter 1:
Chapter 4:
Introduction 4
IT (Information Technology) Investment Manage- BRM Case Study 26
ment: A Global Perspective 5 Vodaphone Customer Intelligence Case 26
IT Investment Trend: A Global Perspective 5 Vodaphone PRINCE2 Case 28
IT Investment: A Regional Distribution 6 SIGMA BRM Case 29
Technology Trends that will lead IT Investment over Fujitsu Case30
the Next Five Years: 7
IT Project Paradox: A Common Failure 8 Chapter 5:
Traditional IT Project Evaluation and Value Realiza-
tion Limitation 8 BRM Application Related Issue 31
Pros and Cons of commonly used Financial Tech- Issues Related with the Adoption of BRM 31
niques 9 IT Manager's Approach towards BRM 31
IT Project Value Realization from Business Perspec- Business Manager's Approach towards BRM 32
tive and rationality of BRM (Benefit Realization Man- Major Challenge: Aligning BRM with Corporate
agement) 10 Strategy 32
Emerging Issue of EPMO (Enterprise Project Man-
Chapter 2: agement office) and BRM 32
Benefit Realization Management (BRM) 11 Chapter 6:
What is BRM? 11
Why BRM? 11 Conclusions & Recommendations 34
BRM for Whom? 12 Conclusion & Recommendation for Organization 34
Fundamental process of BRM Approach 13 Recommendation for KDM (Key Decision Maker) 34
Frameworks for BRM 14 Align IT with Corporate Strategy 34
BRM Models15 Link Current Practice with BRM 36
Cranfield BRM process model 16 Integrate BRM with Strategy Map37
Active Benefit Realization (ABR) Model 17 Adopt a BRM Model 37
Project Appraisal Method (PAM) BRM Model 18 Create EPMO (Enterprise Project Management Of-
The DMR model for BRM 18 fice) 38
Recommendation for Business Manager 39
Chapter 3: Recommendation for IT Manager40
Recommendation for EPMO and Project Manager
BRM Practice in Different Arena 20 (PM) 40
ERP Implementation and BRM 20
Telecom Project Value Optimization 21
Institutional Innovation (Education Sector) 22
Public Sector 23
Developed Economy 25
Emerging Economy25

3. List of Figures
Figure 1: Estimated Actual and Projected Global Spending on IT from 2003 to 2013, Source: World Informa-
tion Services Technology Association (WITSA) Digital Plant, 2010 (October 2010) (Forecast in US$) 6
Figure 2: Project management cycle shift: conventional vs. BRM approach 12
Figure 3: Cranfield process model of benefit management (Source: Ward and Peppard, 2002)16
Figure 4: Active benefit realization approach (Source: Remenyi & Sherwood-Smith, 2002) 17
Figure 5: DMR's benefit realization 18
Figure 6: The core element of the DMR result chain (source: Thorp, 1999, 2001) 19
Figure 7: JISC institutional innovation program framework 23
Figure 8: Public sector project management cycle 24
Figure 9: The new IT alignment: IS capability and organizational performance (Source: Pappard & Ward,
2004) 35
Figure 10: The Application Services Portfolio and IT Infrastructure (Source: Pappard, 2003) 35
Figure 11: Tasks need to accomplish in order to gain benefit from IT project 36
Figure 12: Issues of BRM 36
Figure 13: A Strategy Map (source: Robert S. Kaplan and David P. Norton) 37
Figure 14: BRM strategy and positioning in organizational framework 38
Figure 15: Suggested EPMO structure 39
List of Tables
Table 1: Territory wise % contribution to IT production and projected growth over 2014 6
Table 2: Benefit frameworks (Sources: Shang and Seddon, 2002) 15

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Market Analysis and Benefit Realization Management (BRM) Solutions
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