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CIOs fail to demonstrate the value of IT investments

Leeds, England, 28 January 2004 - Only 25% of UK IT directors believe their ability to measure and demonstrate the value of IT investments is key to success in the work place, according to a survey by business consultancy Deloitte & Touche, published in Computer Weekly.

Peter Bondar, CEO, Program Management Group plc (PMG).

‘Whilst the survey results may be astonishing, it also demonstrates that many IT departments do not have the necessary infrastructure in place to effectively measure the value of IT investments. Most of the survey respondents admitted they struggled to measure the benefits of IT investments and the 71% that attempted, recognised their efforts where not entirely successful.’

‘Whilst IT departments are under disproportionate pressure to deliver against operational requirements, regulatory standards and deadlines, we find that many are constrained by their use of disparate, task-centric project and program management (PPM) solutions. They are unable to constantly synchronise interdependent project activities and resources (without unwieldy manual intervention) or obtain an up-to-date, holistic view of IT performance against key benefits and their targets.’

‘With a flexible resource-centric PPM solution that links projects to programs and programs to benefits like Hydra, IT departments have greater visibility across their IT programs and can track benefits more accurately. In particular they can ensure the right investments are being managed in line with corporate strategy and that benefits are being realised. This means IT directors have the capability not only to demonstrate the value of IT, but can also take an active role in business planning and the setting of business goals.’

‘We find that as IT departments start to effectively use Hydra, they not only improve their ability to measure and demonstrate the value of IT investments, but have access to business critical information that helps them to more effectively manage resources, mitigate risks, make strategic outsourcing decisions and take an active role in business planning by ensuring lessons are learnt and fed back into strategy reviews.’

‘For example, as soon as any IT plan, activity or resource diverges from target, Hydra informs them of any risk or impact on their ability to execute objectives and realise return on investment. This means they can find new ways to make better use of investments and reallocate resources from under performing areas to the business’ key projects. Financial profiles can be linked directly to key milestones providing dynamic updates and forecasting. Operating costs, revenue streams, investments and cost reductions can be tracked over varying time periods.’