Topic: 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.

Enterprise Performance Life Cycle (EPLC) Investment Management Framework

This is a guide to the Enterprise Performance Life Cycle (EPLC) framework to manage IT investments with an enterprise perspective – to achieve consistently successful outcomes that maximize alignment with enterprise-wide and division specific goals and objectives.

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?

Editor's Picks

Sample IT Strategy Plan

A good IT Strategy Plan that you can use as a template to create your own.

IT Strategy Presentation

This in-depth – 78 pages – presentation goes into just about everything you would have wanted to know about IT Strategy aka business IT alignment (ICT Strategy, IS strategy, IS strategic alignment, IT Alignment, strategic information systems planning (SISP)…)

IT Strategy Example

This is an in-depth information technology strategic planning example that details the process and framework that CIOs can adapt to give direction to their own IT Organizations. Excellent Read!! (200 pages)

IT Strategy Template

Use this template to create an IT strategic plan for your organization – aligning business with IT strategy. IT Strategy Template can be downloaded for free by CIO Index members.

7 Steps to Business and IT Alignment

No business will ever reach the goal of “business and IT alignment”. Should this discourage you from pursuing business and IT alignment? NO! It is a worthy goal to pursue. Indeed, it is a critical one to pursue. You might never reach alignment but you can take steps to get ever closer. This requires a process. Often, we ignore the fact that business and IT alignment is a process. This process does not have a starting point nor does it have an end. It is a series of “learn and do” cycles that incrementally get towards alignment. Let me explain.

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