Conclusion 03

Conclusion 03: Involvement

How it's done, not who does it, is what counts when measuring ROI: There's no correlation between confidence in the numbers and who creates or evaluates them. Senior IT executives are the most frequently involved in measuring ROI, followed by senior business executives and the finance staff. The executives most CIOs report to—CEOs and CFOs—are the ones who most regularly review the numbers. Yet almost 60% of IT execs believe their non-IT colleagues do not appreciate the intangible benefits of IT.

Eighty-five percent of respondents report that senior IT executives are involved in measuring the business value of IT investments, with top business execs, at 59% and the finance group, at 49%. Organizations diverge most by size when involving mid-level IT managers: 51% of large organizations bring them in, but only 24% of smaller ones do.

Top executives are regularly involved in reviewing ROI figures before making IT investments. The CFO reviews IT investments before they are approved at 68% of companies, and the CEO reviews them, at 56%.

Fifty-one percent of respondents who have confidence in their ROI metrics believe non-IT executives place too little value on the intangible benefits of IT. That figure rises to 69% for res-pondents with little or no confidence.

This article was originally published on 03-18-2002
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