IT Business Cases in Local Government: An Action Research Study

Effective management of value creation with information technology (IT) is increasingly important for local governments (e.g., municipalities). The business case is a tool that has increased popularity in both the public and private sector to support the management of value creation with IT. However, experiences from local government reveal difficulties in developing effective IT business cases beyond simple cost savings. Based on collaborative action research with Danish municipalities we present insights on contemporary IT business case practices. Based on these insights we formulate lessons for business case practices in local government that we have incorporated into a business case method, that has subsequently been evaluated by IT managers in local government. These lessons have been synthesized into the four principles: minimal contents, benefits ownership, dynamic utility, and social commitment. We argue that these principles improve the content, development, and use of IT business cases in local government.