Happy New Year!!! Welcome to a new year, new decade and a new beginning.
As the recession recedes and recovery takes hold, IT executives are looking at their project lists and trying to decide what their priorities are. Should we do application development in house or bring in an IT consulting company? Should we consider an open source application? What is the ROI? What’s a company to do? It doesn’t matter if your company is in Cincinnati, Dayton or Katmandu, the questions are the same.
Last month we did a pulse survey to see how IT leaders are managing ROI measurement. The results were surprising and sparked a lot of conversation here at STAR BASE, Inc. The thing that surprised us the most was the number of companies that did NOT look at ROI before doing a project. Most of our respondents (58%) do not.
Some of conversations we have had revolved around the idea of doing a project or installing an application just to stay in the game. Could you imagine a company of any size today functioning without email? I could argue that there is negative ROI with amount of time managing my email in box takes!
For those that measure ROI, only about half see the actual ROI align with the projected ROI most of the time. The other half report that they see the actual ROI align with the projected ROI less than half the time and most said seldom or never. I have often said that if management knew how much it was really going to cost to install that new ERP system before they started, they probably wouldn’t.
Since most of our respondents don’t look at ROI and of those that did, half said the ROI did not align, my question is this: How do you decide what projects to do? Are most companies spending money on IT because they need to “keep up with the Jones’ “? Is it because installing that new ERP will look good on everyone’s resume?
Get your copy of our ROI Survey results by going here.