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

By CIOinsight

  • 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.
  • This article was originally published on 04-01-2004