New white paper details ROI evaluation methods

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By: Wise Marketer Staff |

Posted on March 3, 2003

A new white paper from Collaborative Consulting examines the value of implementing effective ROI techniques in today's unstable market conditions, which continue to be vexed by mergers and acquisitions, outsourcing, increased competition, and the need to deliver better products and services more quickly.

The white paper, 'Evaluating Return on Investment for Rapidly Evolving Technology and Business Applications', is the result of interviews with the senior technical executives of ten large organisations across a variety of industries.

The interviews focused on the recent trend toward more rigorous and widespread use of a return-on-investment (ROI) methodology, as well as how enhanced ROI processes can influence other concerns (such as information technology strategy and technology replacement).

"For most organisations, the marketplace is extremely competitive and the margin for error is miniscule," explained Walter Kuketz, chief technology officer for Collaborative Consulting. "Under these business circumstances, ensuring clear and lasting ROI is more critical than ever."

Examining ROI processes
It is important for businesses to evaluate their ROI processes effectively, critically examining the way those evaluations are carried out. By doing so, they gain the flexibility and scalability needed to adjust to whatever variables the market presents.

The paper outlines a number of formulae that companies can use to evaluate ROI, and provides examples of what to do, and what not to do. It also details ways to avoid the pitfalls associated with adding unnecessary or misdirected functionality, failing to align business and technology professionals and ideologies, and becoming sidetracked by trying too hard to create perfect applications.

"Aligning technology with the business should be a focal point in any initiative," concluded Kuketz. "But when testing your ROI processes it is even more imperative."

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