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June 23, 1997
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Return On Investment Survey
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1. Does your organization's senior management require the IS group to calculate return on investment (ROI) -- or some other type of economic measure -- on major technology projects?
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| Yes, does require it
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45.2%
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| No, does not require it
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53.8%
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| Don't know
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1.0%
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2. Does your organization have formal ROI measurements in place for technology projects?
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| Yes, we do
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21.1%
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| No, we don't
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68.3%
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| Don't know
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10.6%
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- 3. If you do have formal ROI measures in place, which of the following do you measure?
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% of
cases
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% of
responses
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| All IT investments
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68.2
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13.4
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| Client-server systems
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86.4
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16.9
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| Desktop hardware and software
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68.2
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13.4
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| LANs and wide-area networks
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77.3
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15.2
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| Telecommunications
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72.7
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14.3
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| Web/Internet/intranet
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54.5
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10.7
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| Application development
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81.8
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16.1
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4.
If you do
not
have ROI measures in place, do you have plans to adopt such measures in the next 12 months?
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| Yes, have plans
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23.2%
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| No, don't have plans
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57.3%
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| Don't know
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19.5%
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5.
Do you believe that measuring the ROI of technology projects is useful?
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| Yes, it's useful
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79.8%
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| No, it's not useful
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13.5%
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| Not sure
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6.7%
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- 6.
What are the biggest challenges to measuring the ROI of technology projects?
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% of
cases
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% of
responses
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| Difficult to measure true economic benefits of IT to business
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77.9%
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33.2%
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| No comprehensive, reliable metrics are available
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53.8%
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23.0%
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| Can't provide a complete accounting of IT investments
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35.6%
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15.2%
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| Can't determine an accurate accounting of IT returns
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61.5%
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26.2%
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| Other
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4.8%
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2.0%
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| Don't know
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1.0%
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0.4%
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