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The death of ROI: re-thinking IT value measurement

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Abstract:

Presents the case that traditional return on investment (ROI) as an approach for justifying and measuring the value of IT investments is no longer appropriate. Argues that measures of financial return need to be supplemented or replaced by disciplined spending behaviours that are sensitized to calendar, infrastructural, temporal, security, knowledge, accountability and connectivity issues. Concludes that organizations that fail to redefine their value targeting and resource allocation processes will end up engaging in dysfunctional management practices.

Keywords: Appropriate Technology; Information Resources; Information Technology Strategy; Project Management; Return on Investment; Value

Document Type: Research Article

DOI: http://dx.doi.org/10.1108/09685229710175756

Publication date: March 1, 1997

mcb/046/1997/00000005/00000003/art00002
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