measure IT roi

Three Different Measures of Information Technology’s Value

The business value of information technology (IT) has been debated for a number of years. While some authors have attributed large productivity improvements and substantial consumer benefits to IT, others report that IT has not had any bottom line impact on business profitability. In this paper, we focus on the fact that while productivity, consumer value and business profitability are related, they are ultimately separate questions. Accordingly, the empirical results on IT value depend heavily on which question is being addressed and what data are being used. Applying methods based on economic theory, we are able to define and examine the relevant hypotheses for each of these three questions, using recent firm-level data on IT spending by 370 large firms. Our findings indicate that IT has increased productivity and created substantial value for consumers. However, these benefits have not resulted in supranormal business profitability. We conclude that while modeling techniques need to be improved, these results are consistent with economic theory. Thus, there is no inherent contradiction between increased productivity, increased consumer value and unchanged business profitability.

Measuring the Strategic Value of Information Technology Investments

This paper describes approaches for measuring strategic value that can provide organizations with proven techniques to improve performance, reengineer processes, benchmark performance against other suppliers, identify outsourcing opportunities, or defend themselves from pressures to outsource. Many organizations respond to tightening budgets by cutting overhead. These measurement approaches can demonstrate how overhead is critical to organizational effectiveness and how cost savings can be found, instead, by measurably improving performance throughout the organization.

A Primer on IT ROI

This presentation goes over the basics of IT ROI – what is it? why is it important? how to calculate ROI? And much more – everything you wanted to know about IT ROI but were afraid to ask!

ICT Investment Assessment Template

This template provides an easy to use yet in-depth and meaningful checklist of questions to assess an investment proposal – it can be used to guide the development of your own business case as well.

Investment Lifecycle Management Framework

This document provides an overview of a comprehensive investment lifecycle management framework to identify, select, fund, build, deploy and monitor investments – from investment proposals, to business cases to implemented solutions and key decisions in between.

ICT Investment Management Guide

This comprehensive guide provides policy, principles, process, framework, and examples for a complete and thorough management – identify, select, evaluate, fund, deploy, monitor – of major investments. You can adapt this guide to create your own Information Technology investment management process and framework.

Measuring Return on Government IT Investments

This paper presents a comparative analysis – describes the similarities and differences – of key frameworks, methodologies, approaches for evaluating the return on investment on government it.

IT Performance Measurement Dilemma

This paper discusses the three critical issues at the heart of the performance measurement puzzle – what to measure? how to measure? How to connect measurement with business results?

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