Forward Value Creation and Digital Government: Solving the Cost-Benefit Paradox?

Abstract

While adoption of new technologies and supply of online services are in focus of measuring uptake of online services in maturity models, measurement of direct and indirect outcome and value creation for the internal and external end-users are only marginal addressed. Based on three vignettes from Norway, this paper argues that the importance of cost overrun is over estimated in the short run, while long-term benefits as well as indirect benefits are underestimated in public sector it-projects. We present a set of propositions for future government digitalization projects, bringing attention to the involvement of internal and external users and bringing focus to balancing short term and long term direct and indirect costs.