In the quest to demonstrate the value of technology investments, benefits realization has long been a complex, often elusive, discipline. For IT leaders, it’s about more than just delivering a project on time and within budget; it’s about ensuring that the investment translates into tangible business outcomes and a positive ROI. Now, with AI emerging as a powerful analytical and storytelling tool, we have an unprecedented opportunity to revolutionize how we approach this critical function. Through AI, teams can unlock hidden value and solidify IT's strategic partnership with the business.
Traditionally, the disconnect between IT and the business has hindered effective benefits realization. IT often measured success by technical delivery metrics—lines of code, system uptime, project completion dates, and the like. The business, however, measures success by different metrics: customer acquisition, revenue growth, market share, and operational efficiency. When technology was viewed as an isolated function, IT decision-makers often lacked insight into the core business metrics that truly mattered, making it difficult to prove the business value of their efforts.
This separation meant that even successful technical implementations could fail to yield the expected business benefits. The challenge lies in the inherent complexity of business metrics. Unlike a simple "if-then" IT scenario, business outcomes are often influenced by a multitude of factors—market conditions, competitive actions, regulatory changes—making it difficult to definitively attribute specific results to a single technology investment.
This is where AI can fundamentally transform our approach. AI excels at identifying patterns and correlations in vast datasets that might escape human observation. By feeding AI systems with both our intended investment goals (the benefits we expected) and the actual business data (what happened), we can begin to:
It's crucial to understand that benefits realization is not a rigid, formulaic process, and AI won't create a simple "ROI calculator" for all situations. Corporate investments are more art than science, and AI helps refine that art. AI provides the analytical power to explore possibilities, uncover new connections, and build more robust, data-informed stories about the value delivered.
The goal is to move from simply asking, "Did this investment deliver the expected benefit?" to a more sophisticated inquiry: "Given the data, what value did this investment truly deliver, and how does that inform our future strategy?" This involves examining metrics from a critical perspective, understanding whether benefits materialized as expected. This examination can uncover if the investment helped mitigate greater losses or even opened up new avenues of value we hadn't initially anticipated.
Here are some core principles for leaders to consider:
By integrating AI into our benefits realization processes, we can bridge the gap between technology delivery and business impact. In this way, we can transform IT from a cost center into a strategic driver of value, ROI, and sustainable growth.