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Advancing Return on Investment Analysis for Government IT: A Public Value Framework

Abstract

Acknowledgments

Executive Summary

Introduction

Section I: Why Assess Public ROI for Government IT?

Section II: Research Summary of Public Value Case Studies

Section III: A Public Value Framework for Government IT Assessment

Section IV. Reflections on the Framework and the Value of Public Value

Appendix: The Research Basis for the Public Value Framework

Endnotes

Section I: Why Assess Public ROI for Government IT?

The scope of government investment in IT and the associated problems certainly deserve serious attention. Both the levels and growth rates in government IT spending are substantial. The most recent data available shows that the level of this investment in both the industrialized countries and the developing world has grown to a very large scale. Though what is included in the IT category may vary across these examples, the overall scale of expenditure remains substantial. (1)

This level of expenditure is receiving increasing scrutiny. The reason for this scrutiny is clear, according to Andrea DiMaio, a Gartner Vice President focusing on the public sector: fiIf governments do not accurately measure the full value of their IT investments, they risk a serious political backlash. They will be accused of wasting billions of pounds of taxpayers' money on unnecessary technology.fl This sentiment has reached the US Congress. In July of this year the Senate Appropriations Committee recommended no funding for the administration's 2007 e-government initiatives, reporting that fi– the committee has no confidence that the amounts being assessed have any relationship to the benefits anticipated to be returned.fl And in the House of Representatives, the current appropriations bill calls for a cost-benefit analysis of all e-government initiatives. According to Mike Hettinger, staff director at the House Government Reform Committee's Government Management, Finance and Accountability Subcommittee, "the language speaks for itself and reiterates what the subcommittee has been saying for the past year, that in order for this initiative to be successful, we need to have a better understanding of the costs and benefits and clearer guidance for the agencies to follow."(2) Certainly this enhanced attention to ROI for IT must include a comprehensive and effective way to deal with the public value side of the problem.