patrickdlogan wrote:Dave Linthicum notes that it may well be that SOA's have large upfront costs that taper off over time. The idea is that ROI comes later, and that the risk capital is spent upfront when the first components for a service are developed. +1. Focusing on ROI from new IT investment will cut little ice with any clued up senior exec these days - all it will achieve is to show you up as out of date. Here's a quote from Verhoef, C., “Quantitative IT Portfolio Management,” Free University of Amsterdam, Department of Mathematics and Computer Science: It is known from extensive research being conducted by the former CIO of the US Department of Defense, Paul A. Strassmann … that there is no relation between information management per employee and return on shareholder equity. Also there is no relation between profits and annual IT spending. So he shows that there is no direct relation between spending on computers, profits or productivity. Indeed, there are companies--in the same industry--each spending about the same on IT of which the one makes high profits, and the other makes huge losses … This leads to shotgun patterns showing the absence of correlations between any kind of return and the intensity of IT investments. The only vague correlation that Strassmann ever found was that when from two comparable enterprises one is spending slightly less than the other, the less spending organization is doing slightly better. This loose correlation leads one to suspect that governance of IT investments aids in creating value with IT instead of destroying profits. IMHO, you can't argue with Strassman's findings. We need smarter IT, not more of it. -- All the best Keith http://keith.harrison-broninski.info __._,_.___
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