The Effective Measurement and Management of ICT Costs and Benefits, Third Edition

Chapter 12: Value for Money and Health Checks

If two people stand at the same place and gaze in the same direction, we must, under pain of solipsism, conclude that they receive closely similar stimuli. But people do not see stimuli; our knowledge of them is highly theoretical and abstract. Instead they have sensations, and we are under no compulsion to suppose that the sensations of our two viewers are the same Among the few things that we know about it with assurance are: that very different stimuli can produce the same sensations; that the same stimulus can produce very different sensations; and, finally, that the route from stimuli to sensation is in part conditioned by education.

T. S. Kuhn, The Structure of Scientific Revolutions (1967)

12.1 Efficiency and Effectiveness Studies

A subject that is different, but relatively close to measuring IT benefits, is that of conducting value for money (VFM) and health check review (HCR) studies of the information systems department. These are very large subjects in their own right, and this chapter provides a brief overview of the area.

The aim of a value for money study is to establish whether the ISD is functioning efficiently, and whether the amount being spent on the department is proportionate to the service level being obtained. Questions such as Is the IS management making the most of the funds invested? , or Can the organization obtain the same service cheaper? are asked. A value for money study may also ask if different ways of managing the ISD...

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