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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
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July 2006 Survey: What's the Value of IT? At Many Companies, It's Just Guesswork. - ' Only six out of ' (
Page 2 of 3 ) ten companies measure the business value of IT.">
Finding 1: Only six out of ten companies measure the business value of IT.
That's a surprisingly low number, given all the resources and importance companies place on technology, and the pressure from CEOs and CFOs to demonstrate value. Small firms are least likely to measure what benefits their IT investments are bringing, but even among big companies (those with revenues over $1 billion), one out of five do no kind of valuation at all, not even such basic ones at cost savings or customer satisfaction.
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: Do CIOs measure business value often enough?
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