CFOs Want More Proof of Tech Investment ROI
CIOs must do more to justify new IT projects based upon the potential to grow their organization's business as opposed to "keeping the buses running on schedule." And, right now, CFOs aren't particularly convinced by what they're seeing, according to a recent survey from CFO Research and AlixPartners. In fact, the vast majority of senior financial executives would give their organizations a "C" or “D” grade when it comes to measuring financial returns from discretionary tech projects. And many suspect that IT initiatives get approved more so due to "squeaky wheel" syndrome instead of the strategic merits of proposals. "The message is loud and clear--companies are spending too much on IT, and they're not getting the business information that they truly need," says Meade Monger, managing director at AlixPartners and co-lead of the global business-advisory firm's Information Management Services unit. "This should be a sobering wake-up call for managements everywhere, especially those considering expensive IT projects of any kind. At the very least, they should be doing rigorous proof-of-concepts before implementing any new project, and perhaps looking at bridge solutions before diving headfirst." More than 150 U.S. senior finance executives participated in the research.