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Lightweight IT investments: Factors influencing Profitability: A study of how IT implementation influence profitability in Norwegian companies

Matre, Kathrine; Harackiewicz, Natalia
Master thesis
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URI
https://hdl.handle.net/11250/2982406
Date
2021
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  • Master Thesis [4657]
Abstract
Several projects are underperforming due to a lack of return from IT investments, resulting in

low profitability. The thesis seeks to uncover whether the absence of value creation applies

today and for investments in lightweight IT. It elaborates on different factors possibly

improving profitability and challenges previous research. In addition, the thesis investigates

whether benefit realization management (BRM) leads to better results within lightweight IT

projects.

The theoretical framework provides insight into lightweight IT projects and BRM and derives

equations for measuring profitability. Our focus is on how the profitability of the customers

of the start-up company RPA Supervisor has developed due to the implementation of their

software. The software automates monitoring, managing, and orchestrating a company’s

digital workforce, i.e., their robots. The customers’ profitability is investigated by evaluating

the technology’s benefits and risks.

We performed a structured interview of the customers of RPA Supervisor to gain insight into

viewpoints regarding their experience of the software and benefit realization. Furthermore, to

answer our research question, the profitability development was investigated through a

comparative analysis that addressed and analyzed factors that influence profitability. The

results were examined in light of the development in profitability and the use of AI in

Norwegian companies.

The analysis revealed that the implementation of the RPA Supervisor software leads to

benefits such as improved supervision and performance of the digital workforce. In addition,

we found that the most prominent risks were discrepancies in performance and general errors.

The discussion exposed that the positive effects of the benefits were high and that the risks

were low. Moreover, we discovered that using BRM is unnecessary to achieve more benefits.

Finally, we proposed a greater focus on business value than financial parameters when

implementing new IT software. Although our findings could not determine with certainty how

large the change in profitability has been, we concluded that a marginal change in benefits

leads to a development in profitability.

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