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July 2006 Survey: What's the Value of IT? At Many Companies, It's Just Guesswork.
By Allan Alter
2006-07-12
Article Views: 2360
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July 2006 Survey: What's the Value of IT? At Many Companies, It's Just Guesswork. (
Page 1 of 3 ) Most CIOs are under the gun to find new and better ways of demonstrating IT's value, and to place a dollar value on intangible or soft benefits. Yet only six out of ten companies measure the business value of IT. Even fewer look at ROI both before and<We begin rolling out the results of our July 2006 survey on business value and ROI with a basic question: are you measuring value at all? The answer, at many companies, is no. And even at companies that do measure value, only about 40 percent of the budget undergoes an ROI analysis. That means many IT executives have no way to provide the answers about business value that CEOs and CFOs want. Other results from our survey—including data on the accuracy of business value and productivity metrics, the kinds of measures companies are using, and whether investments in technologies like web services, RFID and CRM are meeting business value expectations—will be posted online throughout the month of July and early August
Research Guide:
Finding 1: Only six out of ten companies measure the business value of IT.
Finding 2: Do CIOs measure business value often enough?
Finding 3: Skepticism about ROI and business value metrics remains high.
Finding 4: IT executives exaggerate IT's impact on productivity.
Finding 5: How best to measure IT's value?
Finding 6: Many technologies and IT services are meeting, and even exceeding, their business value expectations.
Read our previous surveys on ROI and business value:
ROI 2004: How Well Do You Work with the Business?
ROI 2003: Do You Have Any Faith In Your ROI Numbers?
ROI 2002: How Do CIOs Figure ROI?
Related stories:
Roundtable: The Trouble With ROI
Howard Rubin: How to Measure IT Value
Christopher Gardner and Ray Trotta: How to Determine the Value of a Project
What Does Wall Street Think of Your Technology?
Next page: Only six out of ten companies measure the business value of IT.
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