There's no question that IT execs are feeling greater pressure to prove ROI, and that many are attempting to do so. CIOs seeking to meet these demands should concentrate on developing the right ROI calculation methods. But which methods? Our recommendation: Take a page from those CIOs who feel most confident in their ROI calculations. As a rule, they subject a greater percentage of their projects to ROI analysis, and they measure ROI throughout the implementation of the project and on an ongoing basis after the project is completed. And they are much more likely to use such techniques as activity-based costing, economic value added, internal rate of return, and intellectual capital analysis. The result: They report significantly better returns on all of their IT investments.
This article was originally published on 03-18-2002