Return on Investment in Information Technology: a Guide for Managers
Return on Investment In Information Technology:
A Guide for Managers
Anthony M. Cresswell
Center for Technology in Government University at Albany, SUNY 187 Wolf Road, Suite 301 Albany, NY 12205 Phone: (518) 442-3892 Fax: (518) 442-3886 E-mail: info@ctg.albany.edu www.ctg.albany.edu
August 2004
©2004 Center for Technology in Government The Center grants permission to reprint this document provided this cover page is included.
CENTER FOR TECHNOLOGY IN GOVERNMENT—RETURN ON INVESTMENT IN INFORMATION TECHNOLOGY: A GUIDE FOR MANAGERS
Acknowledgments
T
his report was developed on a foundation of previous work of the Center for Technology in Government and valuable assistance from several staff members. Sharon Dawes, Theresa Pardo, Donna Canestraro, and Meghan Cook made important contributions to early versions. Natalie Helbig, Dubravka Juraga provided excellent suggestions and edits on the final version. Mark LaVigne helped with editing as well, and also worked with Paula Hauser on the design of the printed document. The research on costs and returns of investment in Web site conversion, reported here as a case study, is based on the technical work of Derek Werthmuller and James Costello, and the assistance of Carrie Schneider and Yi-Jung Wu.
CENTER FOR TECHNOLOGY IN GOVERNMENT—RETURN ON INVESTMENT IN INFORMATION TECHNOLOGY: A GUIDE FOR MANAGERS
CENTER FOR TECHNOLOGY IN GOVERNMENT—RETURN ON INVESTMENT IN INFORMATION TECHNOLOGY: A GUIDE FOR MANAGERS
Table of Contents
Executive Summary 1 Chapter One 5 ROI and the Need for Smart IT Investment Decisions 6 An approach to understanding and using ROI analysis 7 Understanding strategic objectives in ROI design 8 Defining and measuring the costs and returns from IT investments 9 Understanding the enterprise: technology in the business context 12 Understanding ROI decisions in their political and policy context 12 13 13 13 Chapter Two Political risk factors Organizational risk factors
A Guide for Managers
Anthony M. Cresswell
Center for Technology in Government University at Albany, SUNY 187 Wolf Road, Suite 301 Albany, NY 12205 Phone: (518) 442-3892 Fax: (518) 442-3886 E-mail: info@ctg.albany.edu www.ctg.albany.edu
August 2004
©2004 Center for Technology in Government The Center grants permission to reprint this document provided this cover page is included.
CENTER FOR TECHNOLOGY IN GOVERNMENT—RETURN ON INVESTMENT IN INFORMATION TECHNOLOGY: A GUIDE FOR MANAGERS
Acknowledgments
T
his report was developed on a foundation of previous work of the Center for Technology in Government and valuable assistance from several staff members. Sharon Dawes, Theresa Pardo, Donna Canestraro, and Meghan Cook made important contributions to early versions. Natalie Helbig, Dubravka Juraga provided excellent suggestions and edits on the final version. Mark LaVigne helped with editing as well, and also worked with Paula Hauser on the design of the printed document. The research on costs and returns of investment in Web site conversion, reported here as a case study, is based on the technical work of Derek Werthmuller and James Costello, and the assistance of Carrie Schneider and Yi-Jung Wu.
CENTER FOR TECHNOLOGY IN GOVERNMENT—RETURN ON INVESTMENT IN INFORMATION TECHNOLOGY: A GUIDE FOR MANAGERS
CENTER FOR TECHNOLOGY IN GOVERNMENT—RETURN ON INVESTMENT IN INFORMATION TECHNOLOGY: A GUIDE FOR MANAGERS
Table of Contents
Executive Summary 1 Chapter One 5 ROI and the Need for Smart IT Investment Decisions 6 An approach to understanding and using ROI analysis 7 Understanding strategic objectives in ROI design 8 Defining and measuring the costs and returns from IT investments 9 Understanding the enterprise: technology in the business context 12 Understanding ROI decisions in their political and policy context 12 13 13 13 Chapter Two Political risk factors Organizational risk factors