Wanted: ROI for internal app development

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.

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TOPICS: Banking
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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%

Topic: Banking

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  • ROI

    This is a critical issue for software developers as we move (again!) into a time when capital is tight and proof of ROI for investors is demanded. To survive in recessionary times, companies must spend as much time as possible doing tasks that are the most profitable. If you don't measure what you do, it is difficult to figure out what tasks/applications/people provide you the most profit, and which ones drain you of vital resources.

    Basic business fundamentals will never die...they just get pushed into the closet every few years because they wear a blue suit, are not all that sexy, and don't get much media attention, but at the end of the day, they are often correct.

    Long Live ROI.
    craighaney
  • Business Process and ROI

    Aware the importance of the ROI is critical, but whether we measure the ROI correctly on correct focus is more critical. IT people keen on delivering automation instead of thinking about what can help business's sales, marketing, product design and many other more valuable fields. I have over heard people saying build business processes on business application can help improve ROI and actually many IT people have been working hard on this.


    For sure, the automation on the business process is important (not critical from my point of view), but please don't over emphasize the business process's contribution to ROI. There?s no secret on business process, it is just put some tools together to save people time and have data into the system. Business process improves the efficiency and standardizes the procedure but it doesn?t help business very much. We always ask how to increase revenue, where is our competitor, why we failed, when to do what ? Obviously to answer those questions we need to jump out the business process and have eyes on information, knowledge and wisdom level instead of data or process level. It is not very helpful if a information management system or CRM system cannot answer critical business questions and help making correct business decisions. The owner of business especially small business need the business software or application more like a smart robot or assistant instead of a cold machine that only eat data and tight user to the business process.

    Post from www.primeobjects.com Information Management System
    PrimeObjects