ROI 2004: How Well Do You Work with the Business?

  • 84% of CIOs say they calculate ROI for the initial justification of IT projects
  • 46% of CIOs say they calculate ROI after projects are completed
  • 32% say their payback projections are not credible to the business
  • 17% say they generally trust the ROI information provided by vendors
  • 68% say their ROI practices have had a positive effect on IT alignment

    Despite the increased pressure to calculate the return on IT investments, doing
    so remains a tricky game. Less than one-fifth of the 370 IT executives who responded
    to this month’s survey on ROI practices believe the ROI information supplied
    by vendors, and a third say their business colleagues don’t trust the payback
    numbers they provide. Still, calculating ROI has many beneficial—if tangential—effects.
    Three quarters of respondents say they work closely with their business colleagues
    to develop ROI metrics, and the happy results of that collaboration are evident
    throughout the survey. The great majority of respondents say that taking the
    time and effort required to analyze the return on IT investments gives IT greater
    credibility throughout their organizations. Finally, more than two-thirds of
    IT executives say their ROI practices have had a positive effect on IT alignment.
    As subjective as ROI numbers can be, making the effort, especially when done
    in collaboration with the business, appears to be eminently worthwhile.

    To download results, click here.

  • CIO Insight Staff
    CIO Insight Staff
    CIO Insight offers thought leadership and best practices in the IT security and management industry while providing expert recommendations on software solutions for IT leaders. It is the trusted resource for security professionals who need network monitoring technology and solutions to maintain regulatory compliance for their teams and organizations.

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