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Roundtable: The Trouble With ROI



By CIOinsight
2003-11-15
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  Table of Contents:
  1. Roundtable: The Trouble With ROI
  2. ' What'

Most IT and business executives we polled say IT is better aligned with corporate strategy. But most agree there's still a long way to go before IT becomes a true strategic partner.

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Roundtable: The Trouble With ROI - ' What'


( Page 2 of 2 )

's Wrong With ROI?">


What's Wrong With ROI?

  • It's hard to separate the ROI of IT from the ROI of a business process or project.

  • ROI gives the illusion of precision and objectivity.

  • There's no universal definition of ROI.

  • ROI formulas don't account for company cost structures, economics or risk.

  • Few executives check the accuracy of their ROI projections.

  • Managers are expected to meet often inaccurate ROI numbers.

  • Managers forget ROI's real purpose: making resource- allocation decisions.

    For a complete transcript of this roundtable discussion click here.

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