Between the Lines

Wanted: ROI for internal app development

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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%

posted by Larry Dignan
January 27, 2009 @ 6:46 am

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Wanted: ROI for internal app development

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