The death of ROI: re‐thinking IT value measurement

Thornton A. May (Vice President of Research and Education, Cambridge Technology Partners, Cambridge, Massachusetts, USA)

Information Management & Computer Security

ISSN: 0968-5227

Publication date: 1 August 1997

Abstract

Presents the case that traditional return on investment (ROI) as an approach for justifying and measuring the value of IT investments is no longer appropriate. Argues that measures of financial return need to be supplemented or replaced by disciplined spending behaviours that are sensitized to calendar, infrastructural, temporal, security, knowledge, accountability and connectivity issues. Concludes that organizations that fail to redefine their value targeting and resource allocation processes will end up engaging in dysfunctional management practices.

Keywords

Citation

May, T. (1997), "The death of ROI: re‐thinking IT value measurement", Information Management & Computer Security, Vol. 5 No. 3, pp. 90-92. https://doi.org/10.1108/09685229710175756

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Publisher

:

MCB UP Ltd

Copyright © 1997, MCB UP Limited

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