January 27th, 2009
Wanted: ROI for internal app development
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%
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
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