ROI 2002: How Do CIOs Figure ROI? - ' Conclusion 01 '
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Conclusion 01: Confidence
Confidence in their ROI metrics is strongly connected to whether executives regularly measure ROI. Without taking confidence into account, IT executives vary widely on what percentage of their budgets they evaluate using ROI, at which point during projects they estimate and measure ROI, and how long they are willing to wait for projects to provide a return.
Less confident IT executives calculate ROI for half or more of their budgets only 27% of the time, while more confident execs do so twice as often. Confident execs measure every IT investment 45% of the time versus 28% for less confident ones, and as part of strategic business initiatives 49% of the time versus 29%. These are strong signs that regular usage is linked to confidence.
Nine of 10 respondents estimate ROI when initially justifying an IT investment, but only 13% estimate ROI before a project is completed. That suggests that few IT execs readjust initial projections throughout projects.
Fifty-seven percent of it execs with more confidence in their ROI metrics measure the actual ROI of initiatives on an ongoing basis, as opposed to 32% of less confident respondents.
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