When organizations embark on projects and programs, they do so with a clear mission: to add value, advance strategies and increase competitive advantage. Yet, according to a recent survey, 1 out of every 2 supply chain software deployments falls short of delivering the expected return on the investment.
Benefits realization
The culprit could be poor project management and, more specifically, poor benefits realization management. According to another recent report, most organizations are still missing significant opportunities to add strategic value to their project management framework, because they lack a formal and focused approach to identifying, managing and sustaining benefits for desired strategic impact.
It starts at the beginning, when the need for the software solution is determined. When project benefits are frequently identified before the start of a project, as part of the business case, organizations experience better results: 74 percent of projects meet goals and business intent, versus 48 percent in organizations that do not. And when organizations frequently use formal project management to address the benefits identification process, they experience greater gains: 80 percent of their projects meet goals and business intent, versus 54 percent in organizations that do not.
Measuring value
While traditional metrics are important, benefits look at the value that is created as a result of the successful completion of a project — the market potential, cost and operational efficiencies, as well as improved customer satisfaction associated with improved supply chain management capabilities. Intangible benefits must also be considered, especially those that speak directly to subjective factors, such as customer satisfaction, brand image, reputation or risk profile.
Supply chain management is about optimizing your resources to the advantage of both your company and your customers. It represents an ideal opportunity to maximize the return on your investment by employing proven, sound practices around benefits realization management.