ROI: How Well Do You Work with the Business?

 
 
By eweek  |  Posted 2004-04-01 Print this article Print
 
 
 
 
 
 
 

Despite the increased pressure on IT to calculate the return on IT investments, a third of business colleagues still don't trust the payback numbers they receive. Yet calculating ROI has many beneficial effects, greater credibility for IT and better IT al

  • 84% of CIOs say they calculate ROI for the initial justification of IT projects
  • 46% of CIOs say they calculate ROI after projects are completed
  • 32% say their payback projections are not credible to the business
  • 17% say they generally trust the ROI information provided by vendors
  • 68% say their ROI practices have had a positive effect on IT alignment

    Despite the increased pressure to calculate the return on IT investments, doing so remains a tricky game. Less than one-fifth of the 370 IT executives who responded to this months survey on ROI practices believe the ROI information supplied by vendors, and a third say their business colleagues dont trust the payback numbers they provide. Still, calculating ROI has many beneficial—if tangential—effects. Three quarters of respondents say they work closely with their business colleagues to develop ROI metrics, and the happy results of that collaboration are evident throughout the survey. The great majority of respondents say that taking the time and effort required to analyze the return on IT investments gives IT greater credibility throughout their organizations. Finally, more than two-thirds of IT executives say their ROI practices have had a positive effect on IT alignment. As subjective as ROI numbers can be, making the effort, especially when done in collaboration with the business, appears to be eminently worthwhile.


    To download detailed research results, click here.
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