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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. - ' Do CIOs measure business ' (
Page 3 of 3 ) value often enough?">
Finding 2: Do CIOs measure ROI often enough?
Pressure to put a dollar value on IT's value is increasing, so it's surprising to find that, on average, only 41 percent of companies' IT budgets undergo an ROI assessment. What's more, only half do an ROI assessment both before and after an IT project is completed. In the financial world, investors look at past performance before making new decisions. Why doesn't IT? True ROI isn't the only way to capture IT value, and measuring accurately is difficult. But CIOs should be doing more quantitative measurements to satisfy their CEOs and CFOs and guide their future investments.
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?
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