Are you getting an optimum return on your technology investment?

by Erin McCune on October 2, 2006

in Change Management, Research Round Up reports that most finance executives and managing directors of US multi-national companies believe that their investments in technology have had a postive impact (such as better customer satisfaction, cost reduction, and revenue improvements). But only one third believe they are getting an optimum return on their technology investments.

Confidence that technology spending is resulting in an optimum return:


Survey findings:

  • 76 percent of senior executives say their technology spending has led
    to positive results, such as better customer satisfaction, cost
    reduction, and revenue improvements. Approximately 22 percent of
    respondents reported very little business impact from technology
    investments and two percent reported a negative one.
  • Executives estimated that between 9.6 percent and 32 percent of their technology spending is wasted or not very effective.
  • Half of the respondents measure IT effectiveness according to
    business-value metrics, such as return on investment and ratio of
    information technology to revenues. Three-quarters of respondents use
    operational metrics.
  • More service companies than product companies rate the impact
    of tech spending as positive — 93 percent of service companies versus
    69 percent of product companies.

The survey by PricewaterhouseCoopers involved interviews with 107 chief financial officers and
managing directors at U.S.-based multinational businesses during the
spring of 2006.

Execs Unsure About Tech's ROI
by Helen Shaw
October 02, 2006

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