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"How do we reconcile the demand on the part of firms, executives, and shareholders to present a valid business case with the reality that almost no one believes the work product that is eventually delivered?" Cutter Consortium Senior Consultant Mark Cotteleer ponders this question as guest editor of the new Cutter IT Journal issue dedicated to the question, Analyzing IT ROI: Can We Prove the Value?"

According to Cotteleer, "What emerges in this issue is a view of a business case whose true value comes when it is treated as a living document that accompanies an IT investment through its entire lifecycle. Clearly, there is agreement on the fundamental toolset to be used -- albeit with some strong disagreement on which specific metrics are best. The continuing challenge, it seems, is how to balance the approach to using these tools to maximize the value of IT investments and the business cases that support them."

Contributors to the debate on IT ROI include:

• Paul Strassmann offers a set of 6 rules meant to guide managers as they approach business case development.

• Mark Bills elaborates on key issues including selecting a valuation metric, valuing intangibles, and accounting for uncertainty. He argues that Monte Carlo simulation offers a more sophisticated approach to understanding project uncertainty than the simpler approach advocated by Strassmann.

• Mark Mullaly, believes that the way to address the weaknesses inherent in the traditional approach to business case development is to develop a better means of benefits realization.

• Cutter Consortium Senior Consultants Bob Benson, Tom Bugnitz, and Bill Walton argue that reliance on financial ROI creates a bias toward projects that are low-risk, but also low-value. They advocate expanding the value criteria within business cases to include a more broad-based set of common value and risk categories, including strategic intentions.

• Cutter Consortium Senior Consultant Ian Hayes argues for enhancing business cases with stories that sell a positive ROI.

The Cutter IT Journal embodies Cutter Consortium's commitment to uncensored debate of the issues. Says Karen Coburn, President and CEO of Cutter Consortium, "Our view is that most issues are complex enough to merit examination that goes beyond the usual simple pronouncements. That's why Cutter is dedicated to debate of the issues -- to help organizations determine the right solutions based on their unique cultures, technology environments, budgets, and business drivers. The mix of critical thinking, data, and real-world experience provided in the pages of Cutter IT Journal and all of Cutter's content, consulting, and training does just that.

"Cutter Consortium's content has been likened to 'consultancy in print' because it is provided by those experts who are doing groundbreaking work in the field and because it is actionable. This makes Cutter unique among IT advisory service providers. Important strategic topics like the ROI/Value question covered in this issue of Cutter IT Journal are addressed in each of Cutter's practice areas, with an emphasis on the agility, risk management, project management, and change management required to successfully implement them."

To request a copy of the Cutter IT Journal issue, "Analyzing IT Value: Can we Prove the Value?" contact .

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To schedule an interview with Karen Coburn or Mark Cotteleer contact Ron Pulicari.

Bios are available online:
Mark Cotteleer
Karen Coburn

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