Impressive ROI reports based on nebulous benefit predictions often
slip through the approval process at big organisations. The numbers
presented are often so impressive, or so difficult to understand,
that no one bothers to question them. Organisations launch big
software projects such as enterprise resource planning (ERP) and
customer relationship management (CRM) - which can easily cost $50
million apiece at a large organisation - with a completely false
sense of whether the project will pay off.
anything but minor projects, the ROI analysis is essential to the
business case. But with the CIO responsible for delivery of the IT
component of the project within budget, and a business manager
responsible for the realisation of the benefits for the project,
finalising the ROI analysis is often difficult.