Make IT Profitable

PENG — A Practical Tool for Financial Evaluation of IT Benefits

Göran Lundgren, Lars-Erik Dahlgren, Lars Stigberg

Publisher: Ekerlids, 1997, 133 pages

ISBN: 91-8859-507-2

Keywords: Information Systems

Last modified: April 5, 2021, 6:32 p.m.

Large amounts are invested each year in information technology (IT). Research has shown that in general, up to 80 percent of those investments fail to generate potential benefits in an operation. Some of the reasons behind this problem are inadequate decision-making bases, failure to account for "soft benefits" generated by IT, and a lack of emphasis on what is of importance in an operation.

Make IT Profitable:

  • Introduces a practical tool, the PENG model, that enables an evaluation of an operation's IT benefits in financial terms. Such "soft values" as improved customer service are included in the evaluation.
  • Provides a structural working method which increases involvement among co-workers along with an understanding of teh overall picture. Another essential effect is that the PENG model directs attention to what is of importance in the operation.
  • Is aimed at managers who require a comprehensive overview and level of control in making profitable IT investments.
  • Describes six pilot studies carried out by Swedish companies to test the PENG model in their benefit evaluation projects: AFA Insurance Company, the Academic Hospital in Uppsala, Philips Lightni8ng, the Swedish Post Corporation, Ericsson, and Skandia AFS.

The PENG moidel has been developed within the framework of the Swedish National Board for Industry and Technical Development (Nutek).

  1. The Value of IT to Business
  2. Why Evaluate the Benefit of IT?
  3. Benefit Evaluation with the PENG Model
  4. The Answers to When, How, Who and How long
  5. The Ten Steps of the PENG Model
  6. Areas of Application
  7. A Fictional Case where the CEO has the Initiative
  8. Pilot Study 1 — AFA Insurance Company
  9. Pilot Study 2 — The Academic Hospital in Uppsala
  10. Pilot Study 3 — Philips Lightning
  11. Pilot Study 4 — The Swedish Post Corporation (Posten)
  12. More Efficient Usage of IT at the Swedish Post Corporation
  13. Pilot Study 5A — Ericsson HO (Ericsson Hewlett-Packard)
  14. Pilot Study 5B — Ericsson in Latin America
  15. Pilot Study 6 — Skandia AFS Insurance Company
  16. Management SummarypROFITABLE

Reviews

Make IT Profitable

Reviewed by Roland Buresund

Good ******* (7 out of 10)

Last modified: May 21, 2007, 3:09 a.m.

This is in fact a good book about a dear subject for me. It could have been more comprehensive.

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