It’s an unfortunate fact that the vast majority of organizations fail to realize the potential benefits of projects they pursue. These projects often take too long, overrun budget, and fail to deliver the promised value.
Surveys show that there’s huge disconnect between the projected benefits of IT projects and the actual value achieved.
- 73 percent of companies don’t measure the value derived from the software applications they implement
- 50 percent achieve the projected value from their business initiatives later than planned
- 83percent miss the targeted benefits altogether
How does this happen? First, business cases are often wildly optimistic – in part because it’s human nature to assume the best; and second, managers know the numbers must look good to get the project approved in the first place. A That’s bad enough, but then the project loses more value through poor execution. And if users don’t broadly adopt the solution, you lose even more value.
This “value leakage” must be reduced, which requires a formal performance management process along with a purpose-built application, so you can better manage and monitor progress.
At SAP, we call this value realization management.
The underlying SAP Strategy Management application– enables a three-step value management process whereby you:
- Select and complete one of approximately thirty SAP benchmarking surveys, identifying a peer group for comparison
- Complete survey questions pertaining to KPI performance and best practices
- Receive a report showing how you compare to your peers
Using this report, or working directly with an SAP business transformation expert, you can pinpoint areas for improving performance and leverage SAP proven best practices to drive performance improvements
Finally, if you’re really serious about value realization management, then you need a purpose-built performance management application. Relying on desktop productivity tools – and we all know the ones I’m referring to – doesn’t cut it.
We also have a SAP Strategy Management mobile app, available on the iPad, which helps workers remain engaged even when working remotely. You can also be up and running in as little as 12 weeks with the SAP rapid deployment solution for value realization management – a great way to get a jump-start on your performance improvement initiatives.
Ninety-eight percent of companies know they can extract more value out of their initiatives. The question is, what are they doing about it? How about you?