Evaluating the impact of local e-services - Smart Cities

Sometimes the benefits are not all realised because the estimates in the
pre-adoption evaluation were too high. Another reason, however, may be that
no-one in the organisation was given responsibility for realising the benefits.
Sometimes the estimated benefits require changes to business processes,
sometimes employees need education and training, or your citizens need
to be better informed about what you are doing. If no-one is responsible for
these actions, then they will not happen and the potential benefits will remain
unrealised and the net benefit will fall below expectations.
100
85
Unrealised benefits
Uncertain benefits
Indirect benefits
Direct benefits
Figure 9 - Actual net benefits (post adoption)
Costs
This approach to calculating and illustrating the net benefit of an e-service
may be complemented with other financial analyses such as NPV (Net Present
Value) or IRR (Internal Rate of Return). Break even analysis can also be used
to identify the minimum level of take-up rate that is required for an e-service to
begin to deliver cost savings.
www.smartcities.info
Net Benefit = 45 (85-40)
Value factor = 2.125 (85/40)
40