A Process-Based Approach to Business Cases

by Mark Cotteleer

Recent data suggests that IT spending is on the rise [15]. Exactly when these increases will be evident is debatable. What is not debatable, however, is that all new IT expenditures are under close scrutiny. Discretionary IT spending has been sharply curtailed, replaced by the need for executives to justify their investments carefully [14]. A recent Cutter Consortium survey, for example, indicates that 63% of IT executives are required to perform ROI analyses in order to justify IT investments [5]. Forty-two percent of respondents to that survey report that adherence to these policies is more rigidly enforced than in previous years. Other results published recently in a CIO Insight research study support these findings. This study indicates that 87% of firms now require an ROI analysis for initial justification of IT projects [2].

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A Process-Based Approach to Business Cases February 2004

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