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Research Abstract
The Importance of Measuring ROI: The Indicator of Business and IT Performance by SAP AG

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Published on: December 29, 2008
Type of content: WHITE PAPER
Format: Unknown
Length: 13 pages
Price: FREE

Overview:
When an organization compares its own ROI and related metrics against other organizations in its industry or geography at critical points in time, this exposes the effectiveness of its investments versus competitors.
Where the target organization is outperforming others, this indicates an opportunity to capitalize on that success and extend investments. When the target organization is underperforming with equivalent investments, this warrants an examination of the processes of delivery. When results are inconclusive, further drill down into the key factors of ROI, specifically the focus areas for investment or expected return, can illuminate alignment with strategic goals or inefficiencies to be addressed.


So when evaluating IT investments either at a project level or across the entire enterprise, ROI provides a measure which can translate the benefits of IT into terms the business understands and values. Measuring specific IT project ROI is a generally understood and accepted practice. This paper explores how to examine the Return on Investment of IT across the enterprise. We call this ROITâ„¢ or the Return on IT. This paper discusses ROITâ„¢ and associated metrics that can be tracked and analyzed with the goal of helping organizations understand the strengths and weaknesses of their current IT and business operations. Better alignment with strategic goals and industry trends delivers the best possible results in the context of current economic conditions.


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