Wednesday, November 22, 2006

Keep the eye on that ROI

Today CIO's have to consider the Return on Investment ( ROI ) for any investment. They have to justify the cost of any IT deployment to the top managers. The top manager wants to know what are the metrics of cost savings and other synergies. So what is the gain in terms of increase in productivity, saving in manpower cost, increased efficiency and accuracy all have to be quantified and reported to the management.

Today the IT investment and department is no longer supposed to be the support function which it used to be some years back. Today it is considered as the core strategic function which is necessary for any organisation to survive in the market and further its interests. The top management has to be convinced of any expenditure and this can be easyly done if the top management team is tech savvy. If not they should be involved in Workshops and executive coaching courses to make them enlighetened on the issue.

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