Many organizations do a poor job of measuring the business value of their IT investments. Simple financial metrics are not good enough. But there are a number of consistent, repeatable, and credible measurement methodologies that hold both business users and IT departments accountable. Compare four methodologies, and learn how adding one of them to your overall governance framework can improve your IT investment returns.
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the expected benefits from IT investments (see Figure 1-2). However, the majority appear to be using standard financial measures such as ROI, net present value (NPV) , internal rate of return (IRR), or similar metric. While this is certainly an improvement over not measuring anything, exclusively using financial measures has serious flaws: There are too many to choose from. There is a wide variety of financial measures in use today including ROI, NPV, IRR, payback period, and economic value added (EVA)