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IT Adoption Trends: Where is the ROI?

By Susan Nunziata on 2011-01-25


What's your IT-business relationship like? Do you see yourself and your team playing the role of "order taker" responding to every business demand? Or is your operation functioning as a partnership with the business structure? Perhaps you're in the enviable position of playing a leadership role as a CIO who is charged with driving forward the business agenda in your enterprise. A recent survey of IT decision-makers, conducted by IT adoption consulting firm Neochange and sponsored by Datango, iRise and KNOA, reveals that those organizations in which IT plays a leadership role in business decision-making achieve the greatest return on their technology investments. Neochange worked with CIO Insight's research division, Ziff Davis Enterprise Research, to field the survey in winter 2010. A total of 204 IT and business leaders completed the survey, representing a variety of company sizes and industry verticals. The majority of respondents (59.3 percent) are experiencing positive IT ROI trends by working their existing IT investments for more value. One measure of IT ROI, according to the report, is the "effective usage rate" of a given solution among end users. In organizations in which IT is seen as an "order taker," IT deployments achieve an average effective usage rate of 48 percent. This contrasts sharply with the average effective usage rate of 58 percent for organizations where IT is considered a partner to business, and the average effective usage rate of 69 percent in operations where IT is considered to be a business leader. Survey respondents also share significant shortcomings in their companies' ability to build end-user capabilities through training and support.

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Who's responsible?

52.7% of respondents say their corporate executives ultimately hold IT management responsible for the success or failure of an enterprise software deployment or upgrade.

Who else is accountable?

(percent respondents)Business unit/department management (19.2%)Corporate management (17.2%)Software vendors/solution providers (7.9%)Other (3.0%)

Who drives the alignment of business and IT in your organization?

(percent respondents)Collaborative effort (46.7%)IT (43.3%)Business (10.0%)

What's the relationship between IT and business units in your organization?

(percent respondents)Partner (58%)Order taker (32.1%)Leader (9.9%)

Mind the gap

There's a notable gap in the features-to-value ratio in enterprise application deployments.

80/20

52.5% of respondents say that 80% of the value possible from their enterprise applications is created by only 20% of the developed features.

Training end-users

What percentage of annual application budget is spent on end-user effectiveness programs? (percent respondents)Less than 5% of budget (55.6%)5%-9% of budget (21%)10%-14% of budget (14.2%)15%-19% of budget (6.8%)20% or more (2.5%)

Top 3 methods for building end-user capability

(percent respondents)Help desk support (57.4%)End-user training for new hires (57.4%)Power-user support for other users (52.5%)(note: multiple responses allowed)

Top 3 reasons for poor end-user capability

(percent respondents)Slow adoption of system usage/best practices (60.0%)Inadequate user-development strategies (32.7%)Lack of support/commitment to upfront user training (29.1%)(note: multiple responses allowed)

Business Management’s Top 3 Shortcomings Related to Software Value

(percent respondents)Business executives do not commit sufficient attention or investment to organization change leadership (66.7%)Business executives do not explain the value of effective usage to your organization (66.7%)Business executives fail to choose incentives/metrics that are aligned to effective usage (25.0%)(note: multiple responses allowed)

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