ROI 2003: Do You Have Any Faith In Your ROI Numbers?

By Allan Alter  |  Posted 03-17-2003 Print Email
Seventy percent of IT executives say their metrics don't fully capture the business value of their IT projects, while only 55 percent say senior business executives are regularly involved in calculating the business value of major IT investments.

68% of CIOs measure the benefits technology brings to strategic goals

76% of IT execs believe the pressure to measure intangible benefits has increased

73% of CIOs don't calculate ROI on projects after they're completed

70% of companies find it difficult to calculate ROI

44% of the results of ROI calculations are subjective

Given the state of the economy and the penny-pinching mood of many corporations large and small, it's no surprise that the pressure to measure and improve ROI continues to increase. Judging by this month's research study, however, the techniques most CIOs use aren't up to the task. According to the more than 375 CIOs who responded at the end of last year to our second annual ROI survey, more projects are being assessed with various ROI metrics, more business executives are involved in evaluating the potential return on IT projects, and more companies are trying to tie the benefits of IT more tightly to their strategic business goals. The downside: despite their good intentions, fully 70 percent of IT executives concede that their metrics don't adequately capture the business value of their projects; indeed, half aren't sure their companies use the right approach. That would explain why less than half of respondents bother to calculate returns on such critical systems as ERP, corporate portals and business intelligence. All in all, the state of the art of ROI practices is dismal.



 

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