Overview

By Terry Kirkpatrick  |  Posted 03-18-2002 Print Email

Overview

Most of the 404 top IT executives in our survey feel greater pressure than ever before to demonstrate a return on their IT investments. But there's no agreed-upon approach to calculating ROI. Worse, 70 percent believe their metrics don't fully capture the value of IT, and nearly half lack confidence in their ability to accurately calculate ROI. But IT executives who are more confident in their ROI methods also claim better returns on their IT investments, and they measure ROI more frequently and supplement commonplace ROI approaches with more sophisticated measures.

Six out of 10 IT executives say the pressure to calculate ROI is on the rise, while only 2 percent say it's decreasing.

There's no gold standard yet for calculating the value of IT. Seventy-seven percent of respondents cite cost reduction as one of their ROI methods; no other method was cited by more than 60% of respondents.

At 46%, nearly half of respondents are somewhat or not at all confident that the methods they're using are accurate.

For the IT investments we measured, 75% of respondents who do have confidence obtained the returns they expected or better. Only 56% of respondents with little or no confidence in their ROI methods made the same claim.

Those with confidence are also more likely to use more sophisticated ROI estimating techniques, and tend to find it easier to assess the ROI of various technology initiatives.



 

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