Wanted: ROI for internal app development

Summary:Only 42 percent of companies calculate return on investment for applications they develop, according to a survey. The survey, conducted by PreEmptive Solutions in early December, finds that companies just don't measure return for their internal applications.

Only 42 percent of companies calculate return on investment for applications they develop, according to a survey. 

The survey, conducted by PreEmptive Solutions in early December, finds that companies just don't measure return for their internal applications. News flash: I seriously doubt these companies are exactly ROI sticklers for packaged apps either. 

Obviously these ROI-phobic companies need some basic metrics and an inventory of development, support and maintenance spending. The biggest takeaway: Software remains more art than science.

Some of the findings from PreEmptive Solutions, which polled 300 software developers:

Does your company calculate a return-on-investment on the applications that you develop?

  • Yes – 42%
  • No/Unsure – 58%

If yes, how does your company calculate return on investment of applications?

  • Apply a well-defined set of metrics and success criteria to ensure a consistent approach – 16% (7% of total respondents)
  • Treat each situation as unique or have multiple approaches – 84% (38% of total respondents)

If no, would your company benefit from adopting a consistent system for measuring application return on investment?

  • Yes – 41%
  • No – 19%
  • Unsure – 40%

Topics: Banking

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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