Poll Reveals Most CIOs Lack Knowledge and Tools Required to Measure Return On Investment
FRAMINGHAM, MA – MARCH 7, 2002 – Although many companies conduct research to determine the projected return on investment (ROI) before making any technology investment, few companies go back and measure actual returns against their projections, according to a new poll from IDG's Computerworld. Sixty-eight percent of the CIOs and key information technology (IT) executives polled earlier this week said that they rarely or never verify defined ROI calculations when a technology project is completed.
The poll revealed that 65 percent of IT leaders feel they do not have the knowledge and tools required to calculate ROI, with 74 percent of organizations admitting that they do not have a formal process and budget in place to measure the ROI of technology projects. In fact, 31 percent of leading IT executives have never been personally involved in an audit of an IT project at their organizations.
Despite the fact that one out of two of those polled believe ROI is a valid measurement of the worth of an IT project, the majority of IT leaders determined that ROI is not as important as other metrics when determining whether or not to proceed with a technology project. Many poll participants suggested that the key factor to consider when making technology purchase decisions should be overall business value, rather than revenue generation measurements.
Results are based on polls conducted at the Premier 100 IT Leaders conference held in Palm Desert, Calif., earlier this week. The conference was attended by more than 400 CIOs, IT directors and business managers representing a wide swath of vertical industries. ROI was one of a number of panel presentations at the annual conference which focuses on great ideas, strategic use of best practices and real-world leadership from the IT and business executives who are leveraging technology to enhance business value.
A complete summary of poll results and panel discussions will be available in the March 11, 2002 issue of Computerworld. For more information, or to speak with Computerworld's ROI expert, Julia King, please contact Kristen Wylie, Marenghi Public Relations, at (781) 915-5024 or firstname.lastname@example.org.