Why I Never Look at the Value Case or ROI
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- Published: Wednesday, January 21, 2015 08:00
By Mark Tonnesen
Principal
When evaluating potential IT initiatives, the most common approach is to focus on the numbers and look at the return on investment (ROI) or value case. For example, say your company is considering implementing a new Enterprise Resource Planning (ERP) system. Chances are the CEO and CFO will ask, "What's the value?" Or, "If the new system will cost $10 million, can you show me how it will produce a $10 million ROI?"
As far as I'm concerned, though, if you're asking about the value case or ROI when evaluating IT initiatives, you're asking the wrong question and looking at the wrong things.