A Framework for Measuring the Benefits of IT Innovation

This paper presents a new framework for measuring the benefits of IT in construction. The framework is based on the principle that benefits realisation must be managed by: planning for strategic alignment and business-driven exploitation, managing the process of predicting benefits, and by measuring resulting benefits after a system or innovation is implemented.

Three distinct types of benefits are identified within the new framework associated with business efficiency, business effectiveness and business performance.A key barrier to the more effective exploitation and application of IT in the construction sector has been the lack of investment on a scale comparable with other sectors.

A primary reason cited for the low level of investment is the low level of perceived benefits from IT investments amongst construction business managers.Many benefits evaluation methods exist and are widely applied in other sectors. Benefits evaluation methods in construction are under-utilised. One reason for this is the lack of fit between these methods, and their associated language, with the peculiarities of the construction sector.

The new framework presented in this paper has been derived for specific application to the construction sector.The framework has been subjected to testing and application within UK construction organisations. The results of this testing suggest a number of improvements in the benefits realisation process.